The following is Provisions of the Economic Stimulus Bill, information you must know.
The 2008 tax credit provision has been amended as follows:
- Tax credit is increased to $8,000
- The income limits remain the same: ($75,000 for an individual; $150,000 for a couple).
- First-time home buyers are principal residences only.
- Tax credit is available until December 1st (previously it expired July 1st)
- Waiver of recapture (i.e. no repayment requirement) for properties purchased in 2009 prior to December 2009
- The provision is retroactive to purchases made on or after January 1, 2009
- Recapture section does apply to properties sold in first three years
- Waiver of prohibition on financing by mortgage revenue bonds is included
Here is even more information to give you a more thorough understand of these new provisions:
Time Frame to buy? – By December 1, 2009
First-time home buyer? – A buyer who has not owned a home for three years.
Married first-time home buyer? – Both buyers have not owned a home for three years.
Claim tax credit? – Claim the tax credit on your federal income tax return.
Other form or forms? – No other form except your federal income tax return.
Credit limits? – Single $75,000, Married $150,000.
Building a custom home? – You qualify, but you have to occupy the home by Dec. 1, 2009.
Buying a new home? You qualify, but the settlement day has to be by Dec. 1, 2009.
Tax credit pay back? – You are not required to repay except for certain conditions.
Access the tax credit now? – Change your withholding numbers.
Mortgage Revenue Bonds? – Allow tax credit home buyers to participate.
Loan credit? – State housing finance agencies to help buyers at closing by advancing the credit amount as a loan.