reinvestment act
American Recovery/Reinvestment Act of 2008
April 23, 2009 by Jim Bigelow · Leave a Comment
American Recovery/Reinvestment Act of 2008
First time home buyers purchasing any kind of home, new or resale are eligible for the tax credit. To qualify a home purchase must occur on or after January 1, 2009 and December 2009. The purchase date is when closing occurs, and the title to the property transfers to the new home owner.
For married tax payers, this law test the home ownership of the buyer and his/her spouse. For example: if you have not owned a home in the last three years, but your spouse owned a principal residence, neither you or your spouse qualifies for the tax credit.
However, unmarried joint purchasers can allocate the credit amount to any buyer who qualifies as a first time home buyer.
Ownership of a vacation home or rental property does not qualify as a first time home buyer.
The tax credit is equal to 10 percent of the purchase price up to a maximum of $8,000 dollars.
The income limits for single tax payers is $75,000 and the limit for married tax payers is $150,000 filing a joint return.
This tax credit does not have to be repaid. You claim the tax credit on your Federal Income Tax return. Home buyers should complete IRS Form 5405 to determine their tax credit amount, and claim this amount on line 69 of their 1040 income tax return. No other forms or applications are required, and no approval is necessary.
Any home that will be used as a principal residence will qualify for the credit. The tax credit is refundable, which involves the government sending the tax payer a check for a portion or maybe all of the refundable tax credit.
For qualified veterans 100 percent financing is available through VA Guaranteed Loan Program. Veterans with 100 percent disabilities, certified by the Veterans Administration as service connected are eligible for property exempt status in the State of Oklahoma.
As a military retiree, dedicated to the military personnel and their families, I urge you to contact Coleman White@Jimbigelow.com for all your real estate needs.
Coleman White 918-760-1317
coleman@jimbigelow.com www.jimbigelow.com
Jim Bigelow Bigelow Group Realtors 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
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