Update on $8,000 First-Time Home Buyer Tax Credit >> click here
_____________________
_____________________
There are just about 6 months left for Las Vegas First-Time Home Buyers to take advantage of the $8000 Tax Credit.
*Update – Even though the HUD Secretary mentioned the possibility of using the $8000 tax credit as a down payment, it isn’t a reality quite yet for Las Vegas First-Time Home Buyers.
_____________________
$8000 Tax Credit Basics
_____________________
The $8000 First-Time Home Buyer Tax Credit is part of the original $787 Billion American Recovery and Reinvestment Act of 2009, and is intended to help stimulate the economy by giving money to buyers who purchase a home between Jan 1, 2009 and Dec. 1, 2009.
- This is for first-time buyers only who have not owned a principle residence in the past 3 years.
- The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
- Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
- The tax credit does not have to be repaid.
_____________________
Frequently Asked Questions
_____________________
Q: Is the $8000 First-Time Home Buyer Tax Credit for FHA loans only?
No – The tax credit applies to any home that is purchased as a principal residence, regardless if FHA financing was used or not.
Q: Do I have to pay the $8000 back?
No – This is a credit to your 2008 taxes, which are due on April 15, 2009.
EX 1: If you owe $5,000 in taxes, then you would be receive $3000 from the IRS.
EX 2: If you do not own any money, then you would receive a check for $8000.
The $7500 tax credit launched in 2007 does have to be re-paid over a 15 year term.
Q: Are there income restrictions?
Yes – The income restriction is based on the tax filing status of the borrower. If you file as Single, then the max Adjusted Gross Income you can show is $75,000 to receive the full credit. If you make more than $75,000, but less than $95,000, then the credit is phased out based on a ratio. For couples filing as Married, then the max Adjusted Gross Income is $150,000 – $170,000 based on the same scale.
Q: How is income determined?
Income for the $8000 tax credit is determined based on the Adjusted Gross Income which includes salaries, wages, interest, dividends, pension, retirement earnings, rental income, and several other things that your CPA or tax consultant should review with you.
Q: Do I have to apply for the tax credit?
No – You simply have to fill out IRS form 5405. If you have already filed your 2008 tax returns, then you just have to file an amended form 1040X.
Q: Can I use the tax credit as part of my down payment?
No – Speak with your CPA, but logistically it is impossible to take a credit on something that hasn’t been purchased yet.
Q: What if I filed my 2008 tax returns for the $7500 on a home that was purchased in 2009?
Just file the amended form 1040X.
Q: Will I ever have to pay the $8000 tax credit back?
Yes – If you sell the property within 3 years from the time of purchase, you’ll have to pay back the full amount. There are special provisions made for homes that are sold as a result of a divorce settlement.
Q: What if I’m building a new home?
You can still qualify for the tax credit as long as you occupy the home prior to Dec. 1, 2009.
______________
Top 6 Las Vegas Mortgage Links / Articles / Questions
- Las Vegas First-Time Home Buyer Frequently Asked Questions
- Las Vegas Mortgage – How Much Can I Borrow?
- What Are The Current Mortgage Interest Rates?
- Applying For A Las Vegas Mortgage – What Documentation Do I Need?
- How Does The Mortgage Approval and Funding Process Work?
- $8000 First-Time Home Buyer Tax Credit
______________
9488 West Flamingo Rd. Suite 102
Las Vegas, NV 89147 | NV LIC 2511
702-432-5626 | Email
>> Apply Online
{ 1 comment… read it below or add one }
One more important item that a lot of people want to know about. You CAN NOT buy a home from a close relative and collect the tax credit. See IRS Form 5405 for their definition of related parties. I guess they figured out for $8k, parents would let their kids buy their house.