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Tax Credit for Homebuyers
Posted on Feb 18, 2009 by Mike Geyer
What a wild ride it has been with the credit meltdown and homebuyer fears this Fall and Winter. The stimulus bill just passed by Congress and signed by the President yesterday is very confusing but let me simpify it for you. First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income. The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.
Tagged: stimulus package, tax credit, first time homebuyers, credit crisis, mortgage meltdown
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