Wednesday, February 18, 2009

Provisions of Economic Stimulus Bill

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.