I received several calls this week from folks in Saline, Michigan wanting to know how to get the $8000.00 tax credit passed in the Obama Stimulus Plan. Many were thinking they were being given the money to purchase a home. No, you are given a CREDIT on your tax liability.
Here are the rules to apply for the Tax Credit.
If you buy a home between January 1, 2009 & December 1, 2009, you can apply for the tax credit of “up to” $ 8000. It is actually 10% of the purchase price or whichever is less.
The tax credit does not have to be repaid.
If you are single your income must be below or equal to $ 75,000 per year in salary. If you are a couple filing jointly you can not make over $150,000 per year.
You must purchase a home in the United States.
The home must be your primary residence not a vacation, or investment home.
This tax credit is ONLY for first time buyers.
You are not eligible to claim the credit is you are purchasing from a relative.
You can not have owned a home for 3 years prior to applying for the credit.
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Missy Caulk & Team can be reached at 734-216-2822 or email: Missy@MissyCaulk.com
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Missy Caulk & Team can be reached at 734-926-9797 or email: Missy@MissyCaulk.com
Our Team of 6 agents are available to help you relocate to Ann Arbor, Saline, Dexter, Chelsea, Milan, Ypsilanti Township, Clinton, Manchester, Whitmore Lake, or throughout Washtenaw County, MI.
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Missy, the good news on this one unlike the former $7,500 one, this one is a CREDIT and can with certain guidelines be claimed on 2008 taxes.
Hi Missy. Nice easy to read informative post!
Great idea.
Ken
Great help Missy! I got a call from a person in Chicago about my other post concerning LC & the tax credit. People are very hungry for information, and it is NOT easy to find.
This is good information to share. I know it is confusing for some.
Missy - The Tax credit is certainly generating interest. One interesting point I learned is that a buyer who purchased a home now but has already filed a tax return this year can amend it to get the tax credit now.
Hi Missy its a big confusion here too but I think I know why I have heard the Title Loan Companies and Check into Cash companies are offering loans based on the homewoner getting the tax refund, the thing about it though is these RIP OFF places are charging like 30% Plus and if you don't close on the loan you owe them the 8k back plus interest!! Highly advise to tell our clients to stay away from these places.
Justin, that is TERRIBLE. I had not heard of this.
Jennifer, you are correct, you can do an ammended return if you want to for 2008
Hi Missy - I just heard that there was a ruling that if you own a home but it was not your primary residence for at least three years (for example a rental that you own) you might still be considered a first time homeowner if you are buying a home that you will occupy. Have you heard about this?
Missy,
I am also old enough and require reminding (LOL). I actually couldn't remember whether the purchase price was $80K or $100K to be eligible for the full amount. Time ot retire. Calendar says one thing, the wallet says another. Always a dilemma (LOL)
Missy, I heard that the stipulation is that you have to live in the house for 3 years. Is that true? I have heard a lot of "stuff" both good and bad about this 'stimulated' program...
your building consultant for life from Nashville, TN...
Missy:
This was certainly useful for the folks in your area. I have been sending out the link to the website that disucsses the plan in more detail to everyone I know adn everyone in my database. I suspect there are lots of confused buyers. We are seeing lots of activity related to this plan. It's a shame we are also hearing about some companies trying to take advantage, per Justin's comment.
Jeff
You do have to live there three years....form 5405 is the IRS form to file for either 2008 or 2009 taxes. Right now I would say 50% of my buyers are first time homebuyers. I actually put this on the back of my car; never one for that type of advertising...but didn't you just write about trying new strategies? I'll give it a try. It says "First Time Buyer? Receive $8,000 Free" and then a number to call.
Cindy, that is a great idea, let me know it makes your phone ring.
Hello,
First off I just want to say thanks for your this information that you gave us about the tax credit and for making it plan and simple, its very clear now but I have a question are you still available for the 8,000 tax credit when you buy a house under a land contract term?
Thankyou,