$8,000 for first time home buyers
By Don | February 17, 2009
I just hit the “Publish” button for this article moments after Obama signed the new stimulus package – it’s now law. But how is this $8,000 different than the $7,500 deal Congress passed last year?First, the $7,500 wasn’t a “real” tax credit. It had to be paid back over time, but still it was “better than a kick in the pants” as my late father used to say.
This $8,000 is a true credit, but there are strings attached:
- First time buyer (haven’t owned in past 3 years)
- Max income of $75k (single); $150k married
- Must live in home for at least 3 years, or pay it back
- 2009 only – then credit expires
I’m not a CPA or a tax consultant, so can’t give tax advice. However, check with your tax advisor and see if you can claim that $8k against your 2008 tax return!
For buyers thinking about getting their own home, Uncle Sam wants to help make it happen.
Filed under article topic: Home buyers
February 28th, 2009 at 4:26 pm
Is it possible to ‘double-coupon’ these tax credits? It sounds like the $7,500 amount is an interest-free loan(an excellent deal) and the $8,000 is a gift (even better!). Can a first-time homebuyer use both of these amounts or only the most recent $8,000?
February 28th, 2009 at 5:54 pm
Hi Marc – Unfortunately, only 1 of the situations will apply (bummer…), and it depends on when the home buyer bought (or will buy) their home. The better deal is for a home buyer who buys in 2009 because of the pure $8k tax credit (which can be used either on their 2008 OR 2009 tax return. The $7,500 interest free tax credit (loan) is for those who bought last year.