I think we’ve all heard about two different numbers when it comes to housing tax credits. Many home buyers are confused as to how this works.
The condensed version? The first housing credit is $7,500, and it has to be repaid; the second one is $8,000 and doesn’t have to be repaid.
In order to clear up this confusion, I logged on to the website for the IRS at IRS.gov. Here’s the story, in very simple terms:
Both tax credits are for first time home buyers and only for primary residences:
If you purchased a home after April 8, 2008, you may be entitled to a credit worth up to $7,500 which must be repaid over a period of 15 years.
According to the IRS website, the second, and newer plan is for those first-time home buyers who purchase a home during the first eleven months of 2009. These buyers will be entitled to a maximum credit of $8,000 which can be claimed on a buyer’s 2008 federal tax return.
Yes, I said 2008!
So, during 2009, you have but to close on your first home prior to December 1, 2009 to be able to take advantage of this credit. Any questions? Be sure to check out the IRS link provided above as well as with your CPA. The IRS link provides indepth detail on how this first time home buyer credit works best for you.
Call me at: 480.216-3334 or email me at: Teri@HomesAzRE.com for any help I can offer.
Mesa, Arizona Real Estate. Call me at: 480.216-3334 for information on purchasing or selling a home in Mesa, Arizona or surrounding towns. OR email me: Teri@TeriEllis.com. Feel free to visit one of my websites: HomesAzRE.com, ServingMesaArizona, MoveToMesaAz.com or MoveToSunnyAz.com. Or stop by my blogs at: MesaAzRealEstateVoice; or Phoenix Valley Real Estate Blog