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Amount of Credit: $7500 or 10 percent of cost of home (lesser of the two). Maximum available credit of $7,500 for a single taxpayer or a married couple filing a joint return; $3,750 for married persons filing separate returns.
Effective Dates: Applies to home purchases made from April 9, 2008 to December 31, 2008.
Termination Date: July 1, 2009.
Eligible Property: Any new or existing single family home that will be used as a primary place of residence.
Refundable? Yes. The credit will be claimed on a tax return to reduce or, in some cases, eliminate the purchaser’s income tax liability. If any credit amount remains unused, the unused amount will be refunded as a check to the purchaser.
Restrictions: Purchaser (and spouse, if married) may not have owned a principal residence in 3 years prior to purchase.
Down payment: No pre-funding is available for use as a down payment.
Repayment: It must be repaid in 15 equal installments beginning with the second tax year after the credit is claimed. The credit is repaid by including one-fifteenth of $7500, or $500, as an additional tax on your federal tax return.
Recapture: Remaining annual installments will be recaptured at the time of sale if the home is sold before the 15-year repayment period ends.
Revenue Bond Funding: No tax credit is allowed if the home was financed with tax-exempt mortgage revenue bonds.
Income Limits: Full amount of credit available for eligible homebuyer with adjusted gross income of no more that $75,000 per year (single) and $150,000 per year (on a joint return.). Amount of tax credit phases out above those limits ($95,000 and $170,000).
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Amount of Credit: $8,000 or 10 percent of the cost of home (lesser of the two). Maximum available credit of $8,000 for a single taxpayer or a married couple filing a joint return; $4,000 for married persons filing separate returns.
Effective Dates: Applies to home purchases made from January 1 to November 30, 2009.
Termination Date: December 1, 2009.
Eligible Property: Same as 2008.
Refundable? Same as 2008.
Restrictions: Same as 2008.
Down payment: Same as 2008.
Repayment: No repayment if the home continues to be the main residence for 3 years, beginning on the purchase date.
Recapture: If home is sold, rented or converted to a business within 3 years of purchase, the entire amount of claimed tax credit is recaptured.
Revenue Bond Funding: Home buyers who use revenue bond financing can claim the tax credit.
Income Limits: Same as 2008.
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