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• Feb. 13, 2009 - Housing Stimulus status

Hi all!

Well, it looks like the economic stimulus plan had some changes made to it--go figure!

The one that affects the housing industry the most, though, is the homebuyer credit. It was rumoured that there would be a $15,000 tax credit to ANY homebuyer this year, but that got completely nixed (there goes the new house we were going to buy this year! Of course, we hadn't thought about what we'd do with the house we're currently living in yet...)

All is not lost, though. The $7500 tax credit that went in to effect last year for First Time Home Buyers was raised to $8,000 and now it doesn't have to be paid back (the original version had to be paid back over time). You do have to live in the home for at least three years, though.  If you sell the home prior to the three year mark, you will have to pay back the credit you do receive.

The dates were changed, too, and extend now to December 1, 2009--but remember, that means the property has to close by the first of December, not just go under contract. This also means that since it is a tax credit, it affects you when you file your annual taxes--this credit does not "come off the top" when you buy the house.

So make sure you talk to your tax professional if you are a first time home buyer and you buy that home this year!

ALSO, as a reminder to those of you that purchased a home in the State of Florida during 2008 through the end of February this year. If you have not filed for your homestead exemption, you have until March 1st to do so. You'll need to bring your paperwork from your closing to the county tax collectors office. They will verify that you are eligible for your homestead exemption. And for those of you unaware, the previous $25,000 homestead exemption is now $50,000, and if you are a disabled veteran, you are eligible for another $5,000 exemption, too.

Here's to lowering your tax bill!

Have a great weekend!

Valerie Sullivan
Realtor, GRI, e-Pro
850-803-8446
www.valeriesullivan.net

Author of 7 Things Every First Time HomeBuyer Should Know to be released Spring, 2009

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• Feb. 14, 2009 - RE: Housing Stimulus status

Posted by Nic

I bought my house December 31, 2008.  As I understand it, I will have to repay the tax credit.  The home I purchased is new construction.  Does anyone know if there is a way I can claim this under the new stimulus plan?

Thanks

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• Feb. 14, 2009 - RE: Housing Stimulus status

Posted by Valerie Sullivan

Nic,

First, congratulations on purchasing your new home!

My suggestion is that you speak with your tax professional as everybody's tax situation is different.  From what I understand of the updated stimulus bill, though, the tax credit does NOT have to be paid back--the stipulation is that you do have to be a first-time home-buyer (regardless if the house is new construction or not).  You also do have to remain in the home for at least three years after the purchase date.  If you sell the home prior to the 3 year mark, you would have to re-pay the tax credit.

You should be able to claim the credit on your 2008 tax return. If you have already filed, you can file an amendment to the return. 

I hope this helps!

Valerie

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• Feb. 16, 2009 - RE: Housing Stimulus status

Posted by Wesley Fritz

What is the effective date of the new plan?  Is the tax credit based on the purchased price of the home?

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• Feb. 16, 2009 - RE: Housing Stimulus status

Posted by Valerie Sullivan

Wesley,

Thank you for the question!  It is a good question.  If you go to www.irs.gov, they will have details of the plan once actually published.  Unfortunately until all the exact specifics are released, we won't know them. 

I do know the original version was dependent on the price of the home.  I'm sure the new one will also be dependent on the price of the home, but what changes were made will be released when the full package is released to read.

From what I understand so far, the effective date would be on any home bought (closed transaction) before December 1, 2009.  Either way, regardless of any information you read, find, or hear, make sure you speak with your tax professional since everybody's tax situation is different.

I hope this helps!

Valerie Sullivan
Broker Associate, GRI, e-Pro
Valerie@ValerieSullivan.net
www.ValerieSullivan.net

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• Mar. 2, 2009 - RE: Housing Stimulus status

Posted by Elizabeth

 

I was thinking of buying a home for my granddaughter and her family to live in. There credit is not good engough for them to purchase a home right now on thier own. Would that $8000 tax credit apply to me since  I am not persay a 1st time home buyer?

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