If you’ve been reading this blog, receiving my weekly newsletter, or just listing to the news in general- most folks are now aware of the $8,000 first time home buyer tax credit. As we all know, time sure does fly!
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There are less than 100 days remaining to qualify for this awesome credit!
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With all of the FABULOUS VALUES available in the Las Vegas Housing Market, who wouldn’t want to take advantage!?!
Q: Who qualifies for the tax credit?
A: Although it is referred to as the “first time homebuyer tax credit”, the credit is available to anyone who has not owned a home within the last three years. If married, neither spouse may have owned a home within the past three years.
Q: How does the tax credit work?
A: In order to qualify and receive the credit, you must purchase and close on a home prior to November 30, 2009. The credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000, so if you purchase a home that’s sale price is less than $80,000.00, the credit will be less.
Q: How do I receive the credit?
A: You will claim the credit on your tax return. If you owe money for the year, the credit will be deducted from the sum you owe. If you do not owe, you will receive a check for the tax credit, and if you owe less than the tax credit, it will cover the amount owed and you will receive a check for the difference.
Q: Are there income restrictions on the tax credit?
A: Yes. The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
For more information about this great program, visit NHAB’s website, or Contact Me.
