The new law could put up to $8,000 in your pocket via a first-time homebuyer tax credit that does not have to be repaid. But you must purchase a property this year to qualify. We've had many a customer call us with questions regarding the new law. So, as a service to all who are interested in the $8000 first time home buyer credit, here are a few Q&A's, but be sure to check with your personal financial expert to verify these answers:
When do I need to purchase to qualify?
If you buy a home between Jan. 1 and Dec. 1 this year and close escrow during these dates, you will qualify for a tax credit up to $8,000 - as long as it is your primary residence and you meet the simple requirements.
How does the law define "first-time homebuyer"?
The law defines "first-time homebuyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
What are other requirements to qualify?
All U.S. residences who file taxes are eligible to participate. An income limit of $75,000 a year for individuals and $150,000 a year for joint filers also applies.
How do I apply for the credit?
Taxpayers should use IRS Tax Form 5450 to claim the first-time homebuyer tax credit.
Does the credit have to be repaid?
No. Unlike a similar tax credit passed in 2008, this $8,000 tax credit does not have to be repaid to the IRS.
If you have any other questions, please don't hesitate to give us a call at 609-417-1084.
