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I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.
First Time Home Buyer Tax Credit for San Jose and rest of the Bay Area
Who is Eligible?
- The $8,000 tax credit is available for first-time home buyers only.
- The law defines first-time home buyer as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
- All U.S. citizens and residents (as defined by IRS) who file taxes are eligible to participate in the program.
- The tax credit is a true credit. It does not have to be repaid.
- The only repayment requirement is if the home owner sold the home within three years after the purchase.
- Home buyers who file as single or head-of-household taxpayers can claim the full $8,000 credit if their modified adjusted gross income (MAGI) is less than $75,000.
- For married couples filing a joint return, the income limit doubles to $150,000.
- Single or head-of-household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial first-time home buyer tax credit.
- Married couples who earn between $150,000 and $170,000 are eligible to receive a partial first-time home buyer tax credit.
- The credit is not available for single taxpayers whose MAGI is greater than $95,000 and married couples with a MAGI that exceeds $170,000.
Effective Dates for the Tax Credit
- First-time home buyers would receive an $8,000 tax credit for the purchase of any home on or after January 1, 2009 and before December 1, 2009. To qualify, you must actually close on the sale of the home during this period.
Tax Credit is Refundable
- A refundable credit means that if you pay less than $8,000 in federal income taxes, then the government will write you a check for the difference.
- For example, if you owe $5,000 in federal income taxes, you would pay nothing to the IRS and receive a $3,000 payment from the government.
- If you are due to receive a $1,000 tax refund from the government, your refund would grow to $9,000 ($1,000 plus $8,000 from the home buyer tax credit).
- Buyers can take the tax credit on their 2008 or 2009 income tax return.
Types of Homes that Qualify for the Tax Credit
- All homes, whether single-family, town homes or condominium apartments will qualify, provided that the home will be used as a principal residence and the buyer has not owned a principal residence in the prior three years. This also includes newly-constructed homes.
- 98In the final state of the state address of his gubernatorial career, Gov. Arnold Schwarzenegger proposed a second round of $10,000 first time home buyer tax credit. The previous tax credit depleted eight months before the deadline after benefiting almost 10,700 California home buyers. The Franchise Tax Board stopped taking…
- 98There has been a lot of buzz in the media over last couple of days about extension of First Time Buyer Credit. National Association of Mortgage Brokers (NAMB), National Association of Home Builders (NAHB) and National Association of Realtors (NAR), have been working with the Government for sometime now to…
- 97The great author and speaker Og Mandino once said, "I will act now. I will act now. I will act now." This is great advice for prospective homebuyers over the next 45 days, as two key government programs that have kept home ownership more affordable than ever wind down to…
- 94This is not a good news for first time home buyers in San Francisco Bay Area and rest of the state. CA state tax credit of $10,000 for First Time Home Buyers has reached the $100 million limit. Background - In April this year California government made the $10,000 tax…
- 93Here's how you can claim your $8000 First Time Home Buyer Credit. The video that I created also talks about how a repeat buyer can claim the $6500 Home Buyer Credit. If you have any questions about Home Buyer Tax Credit watch this Video blog or contact me at [email protected].