$8000 Tax Credit Oklahoma | Mortgage Tulsa Oklahoma | Oklahoma Home Mortgage

THERE HAS NEVER BEEN A BETTER TIME TO BUY...AND IT JUST KEEPS GETTING BETTER.

February 15th 2009 Update

First-time buyers get $8,000 tax credit in stimulus bill:

Although many prospective home buyers had hoped for a $15,000 tax credit to buy a new home (as promised by the Senate), the $8,000 tax credit for new home buyers provided in the newest stimulus bill is unprecedented and incredible. A proposed $35 billion credit to support first time buyer home sales was jettisoned in favor of a more conservative $2 - $3 billion provision.

The proposal eliminates the repayment requirement in an existing tax credit for first-time home buyers, and raises the credit to $8,000 from $7,500. Essentially the Federal Government is giving $7,500 to  $8,000 to first time home buyers to help stimulate the economy.

Clarification about the 2009 $8,000 first time home buyer tax credit:

• This is not a deduction, it is an actual $8000 reduction on your next tax bill.
• This bill was designed to help motivate renters (that have been sitting on the fence about home ownership) to become first-time home buyers for the greater good (benefit) of the United States economy (and not the apartment industry).
• The credit program is designed to cover qualifying home purchases between April 9, 2008 and April 1, 2009.
• Some of the details we are waiting for include income restrictions and possible re-payment plans. 

To qualify, you must satisfy these conditions:

• The home much be purchased as a primary residence (you cannot buy your first home for the purposes of renting your new property to Cousin Eddie).
• You must not have owned a primary residence in the last three years.
• For couples, both individuals must not have owned a primary residence in the last three years.
• Vacation homes and rental properties don’t affect this (you aren’t disqualified if you have a vacation home or rental property).
• Must not be a non-resident alien as defined by the IRS in Publication 519.
• Individuals must have a modified adjusted gross income of less than $75,000 annually and couples MAGI of less than $150,000 to qualify for the full amount.
• The home must be closed between April 9th, 2008 and July 1st, 2009.
• The Bill does not provide mention of a credit score or history requirement (but more-than-likely you will need at least a 580 credit score or above).

How the “tax credit” works:

• The tax credit is 10% of the home’s sale price with a maximum of $7500.
• You must claim the credit on taxes filed in 2008 or 2009.
• It’s a credit and not a deduction (difference between tax credit and tax deduction).
• “Tax credit” is a misnomer because it’s really a zero percent loan with some qualifications.

What else in the Bill is "for business":

Most economists feel as though the massive government spending outlined in this most recent "economic stimulus plan" will have only modest results for the economy as a whole, but here are the quick highlights of the governments most recent attempts to artificially create growth by reducing rates, and printing money:

• Companies that build bridges, make concrete, manufacture wind turbines and assemble backhoes for construction will benefit greatly from this $150 billion of new infrastructure spending under the stimulus.
• The package alots $50 billion for energy efficiency and renewable-energy programs.
• Large hospices will receive $134 million — from cuts in what Medicare pays them to care for dying patients.
• The nucleur energy industry will receive around $50 billion worth of federal loan guarantees for technologies that use little or no carbon.
• The defeense industry - The bill provides billion dollars for construction at military facilities.
• Home buyers credit - 10 percent of the value of a home, up to $8,000 was estimated to cost the government $6.6 billion and was allocated in this bill. This provision was designed to help home builders who have witnessed their worst year in new home sales since 1982 (Eye of the Tiger was the #1 Hit That Year).
   

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Senate Extends $8000 Home Buyer Tax Credit until 6-30-2010

adds a $6,500 Tax Credit for existing homeowners! 

First-time homebuyers have been getting tax credits of up to $8,000 since January 2009 as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the Senate voted Wednesday to extend and expand the tax credit to include many buyers who already own homes.

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers or anyone who hasn't owned a home in the last three years would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

The real estate industry has been pushing to extend and expand the housing tax credit. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

The tax break would help industries suffering losses in 2008 or 2009, including retailers, homebuilders and newspapers..

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