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*** Revised Senate Version of the Home Purchase Tax Credit
***
Updated March, 2009
WOW, THIS IS GREAT NEWS FOR HOME
BUYERS !!!
Link to IRS form 5405 for calculating your tax credit
Link to IRS form 1040 for 2008 - see line 69
Call Roy for details and latest news about this subject -
734.629.7222
This is the
latest news on the home buyers tax credit just settled in the legislature
. . .
Unfortunately, one of the spending cuts in
the final plan was a provision for a $15,000 homebuyer tax
credit, which came with an estimated price tag of $35 billion.
Instead, the government will leave in place an existing tax
credit, applicable only to first time homebuyers, and increase
it from $7,500 to $8,000. The primary change to the tax credit
is that it will no longer need to be repaid so it is a true 'tax
CREDIT'. This is great news for first time homebuyers who pay
income tax! It's a great incentive to buy NOW! Call me to
discuss this benefit.
FIRST-TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and
Reinvestment Act
Major Modifications Italicized
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February 2009
FEATURE
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CREDIT AS CREATED JULY 2008
APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL
9, 2008
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REVISED CREDIT –
EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009
AND BEFORE DECEMBER 1, 2009
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Amount of Credit
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Lesser of 10 percent of cost of home or $7500
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Maximum credit amount increased to $8000
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Eligible Property
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Any single family residence (including condos,
co-ops, townhouses) that will be used as a principal
residence.
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No change
All principal residences eligible.
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Refundable
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Yes. Reduces (or can eliminate) income tax liability
for the year of purchase. Any unused amount of tax
credit refunded to purchaser.
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No change
Purchasers will continue to receive refund for unused
amount when tax return is filed.
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Income Limit
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Yes. Full amount of credit available for individuals
with adjusted gross income of no more than $75,000
($150,000 on a joint return). Phases out above those
caps ($95,000 and $170,000).
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No change
Same income limits continue to apply.
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First-time Homebuyer Only
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Yes. Purchaser (and purchaser’s spouse) may not have
owned a principal residence in 3 years previous to
purchase.
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No change
Still available for first-time purchasers only.
Three-year rule continues to apply.
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Revenue Bond Financing
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No credit allowed if home financed with state/local
bond funding.
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Purchasers who utilize revenue bond financing can use
credit.
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Repayment
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Yes. Portion (6.67% of credit or $500) to be repaid
each year for 15 years, starting with 2010 tax filing.
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No repayment for purchases on or after January 1,
2009 and before December 1, 2009
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Recapture
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If home sold before 15-year repayment period ends,
then outstanding balance of repayment amount recaptured
on sale.
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If home is sold within three years of purchase,
entire amount of credit is recaptured on sale. Applies
only to homes purchased in 2009.
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Termination
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July 1, 2009
(But note program changes for 2009)
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December 1, 2009
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Effective Date
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Purchases on or after April 9, 2008 and before
January 1, 2009. Repayment to begin for 2010 tax year.
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All revisions are effective as of January 1, 2009
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ref link:
Click here for NAR link to this information.
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Home
Roy Wysack - Realtor, ABR, e-PRO, SFR
Keller Williams
Realty - Plymouth/Canton
40600 Ann Arbor
Road, Suite 100
Plymouth, MI 48170
Cell:
734.629.7222
E-mail
Fax:
888.807.7832
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