Expanded Tax Break Available for 2009 First-Time Homebuyers
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WASHINGTON — The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.
Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.
“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman. “This important change gives qualifying homebuyers cash they do not have to pay back.”
The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations and repayment of the credit.
This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.
The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.
For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.
The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before Dec. 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.
* Please View the article on the IRS Website for up-to-date information.
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May 31, 2009 at 8:02 PM If someone is single filing income tax as a single, will they still get the full $8,000 credit for 2009. How does that work, if they usually get 2,000 back on income tax will they get 10,000 back? Please explain.
Jun 9, 2009 at 2:32 PM Hello Linda, The credit varies based on numerous variables. Please view the full article on the IRS website www.irs.gov for detailed information and/or consult a tax professional for additional information.
Jul 10, 2009 at 11:32 AM Is there a way to get this money up front? I would love to move into one of the Georgetown models but can't afford to get a downpayment ready before time is up.
Jul 13, 2009 at 1:14 PM Hello Mark, You should call the Georgetown Sales Office at 954-282-6103 and discuss the options they have for you.
Or feel free to visit the sales office at 3593 NW 13th Street Lauderhill, FL 33311. They will be more than happy to sit and discuss your financial options. Thank you for your interest in Centerline Homes.
Jul 19, 2009 at 8:00 PM I would love to purchase a home in Briella. If the home I wanted to buy in Briella townhome is not ready until next year is there a way to still get the $8,000 dollar tax credit? And also still qualify for the FREE closing cost that Briella lender are offering? The home I inquired about was the "The Cobalt" in Boynton.
Tyson
Jul 20, 2009 at 4:17 PM Hello Tyson,
The Cobalt is a really nice floorplan at an incredible value. I would suggest calling Bonnie at the Briella sales office. The number is 954-282-6101. Bonnie should be able to give you some insight to the availability of the home you're interested in and answer any other questions about the community. Thank you for your interest in Briella.
Jul 29, 2009 at 6:39 PM I DON'T HAVE NO MONEY DOWN & HOW CAN I QULAIFY FOR UP TO 20,000 IN ASSISTANCE & BE PREQUALIFIED FOR A 3 BED/2 BATH HOME @ GEORGETOWN IN LAUDERHILL FL
Jul 30, 2009 at 4:07 PM Hello Gillian,
Please contact TJ at our Georgetown Sales office at 954.282.6103. She can help you with your financing and community questions. Thank you for your interest in Centerline Homes.
Jul 31, 2009 at 2:55 PM Can someone explain this to me. Basically how do I get started and who do I contact for information.
Aug 9, 2009 at 4:54 PM Anyone who has additional questions regarding the tax credit should speak with a New Home Consultant at the community of interest. They can help answer all your questions. Thank you