How the Home Buyer Tax Credit Works
February 16, 2009 by Lisa Heindel
Filed under Blog, For Buyers, Real Estate Talk
The buzz in the real estate world for the last few weeks has been all about what changes might be made to the $7,500 Home Buyer Tax Credit that was previously in effect. Finally, the American Recovery and Reinvestment Act of 2009 was approved by both the House and Senate this past Friday, putting an end to the speculation.
The biggest changes are an increase in the maximum credit from $7,500 to $8,000 and the removal of the repayment requirement if the home is occupied for 3 or more years.
Details of the credit are in the chart below. (Courtesy of: National Association of Realtors)
This credit is retroactive to January 1, 2009 and will expire on December 1, 2009. The video below, produced by the National Association of Home Builders, gives even more details about how the credit works.
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If a military member purchases a home, qualifies for the $8K credit and then gets orders to move to a new station with 36 months of the purchace; does the military member need to pay back the credit? Is there a military exclusion?
Joe, there is no repayment requirement for the 2009 tax credit. It is a direct credit – just file the appropriate form with your 2009 tax return to prove your eligibility.
That’s not at all accurate. Go to this link and read.
http://www.realtor.org/wps/wcm/connect/599a64804d24c83d931ff726a9949436/government_affairs_homeb_tax_cred_qa.pdf?MOD=AJPERES&CACHEID=599a64804d24c83d931ff726a9949436
Though it does not answer the question that you asked, it does state that it must be repaid if the house is not you “primary dwelling” for 3 or more years.
Austin, you are correct. Mea culpa for my error. I would consult a tax professional to find out the ramifications for military personnel and if there are some exemptions that have not been publicized or that I’m not aware of.
[...] real estate industry is rife with rumors of an extension or expansion of the First Time Home Buyer’s Tax Credit, but as of this date no changes to the program have been made. Which means buyers are running out [...]