HOMEBUYER TAX CREDIT FOR FIRST TIME BUYERS
February 27th, 2009 categories: Uncategorized
Effective January 1, 2009, first time homebuyers of a principal residence may benefit from the $8000 tax credit. The credit does not require repayment. The credit will be claimed on a tax return to reduce the purchaser’s income tax liability. If the credit amount remains unused, then the unused amount will be refunced as a check to the purchaser. These helpful links will give you more information about the program, such as income limits, and revisions to the 2008 program.
National Assoc. of Realtors Explains First Time Home Buying Credit
Distressed sales – foreclosures and short sales – accounted for 45 percent of transactions in the fourth quarter in Metro Areas, according to NAR, dragging down the national median existing single-family price to $180,100 or 12.4 percent below the fourth quarter of 2007. The median is where half sold for more and half sold for less.
South Florida is one of the three major metro areas where single family home prices have seen the steepest decline and where bargain hunters are being drawn. However, each neighborhood has it’s own adjustment and not all are giving big discounts. Local Realtors will help buyers determine how to effectively determine property values based on the number of distressed sales, discounts, and market conditions. Buyers can no longer assume that all things are equal without further investigation.
EWM,
My latest AARP newsletter says that folks that are not first time buyers but that haven’t purchased a home in the last 36 months are also eligible for the tax credit. Is that true?
Albert J. Orosa
Yes, it is true. Here is the complete explanation:
What is the definition of a first-time home buyer?
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
Please explain the difference in the definition of first time home owner here and HUDs? Seems the HUD definition says if one spouse qualifies, they both qualify. Where is the Law written defining first time home owner that is sited in the Tax Credit language? AND, why would a non-married couple qualify in the same situation? Something is not right with this. ??
what a thought, good point