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Federal Housing Tax Credit of 2009 Can Save You Money
Besides the great prices you can find in the real estate market today, there are a number of reasons to purchase a home before the end of 2009. One of these reasons is the federal housing tax credit that was recently passed in the stimulus package earlier this year. This federal credit offers a financial break to those who purchase a home before December 1, 2009. If you or someone you know plan on purchasing a home this year, you should consult a mortgage loan specialist for all the details regarding the 2009 federal housing tax credit.
The federal housing tax credit applies to homebuyers of all types in the year 2009. The American Recovery and Reinvestment Act states that any homebuyer purchasing a home in the year 2009 can apply to receive a tax credit of 10% of the price of the home. The maximum dollar amount for the tax credit, regardless of how much your new home may cost, is $8,000. This basically means that for purchasing a home costing $80,000 or more, you can receive an $8,000 tax credit for the year. If your home costs $70,000, you will receive 10% of that purchase price, which comes out to $7,000.
Any type of homebuyer is eligible to purchase a home in 2009 and qualify for this year's federal housing tax credit. You don't have to be a new homebuyer, but you also don't have to have already purchased a house in the past either. Whether you are a new homebuyer or a seasoned home buying veteran, you can purchase a house in 2009 and claim the federal housing tax credit.
In addition, any type of home you purchase this year will allow you to qualify for the federal housing tax credit. The home doesn't have to be new, and it doesn't have to fall within a certain price range. Any type of home being sold for any amount of money will be eligible. Even a home that you are building in 2009 can count as the home you are purchasing this year. Houseboats, condominiums, and even mobile homes are completely acceptable. The only universal requirement for your home is that it has to be your primary residence. You cannot purchase a secondary investment property and hope to receive a tax credit for that home. Only the home that you purchase to live in will qualify for the federal housing tax credit.
In order to claim this tax credit after you purchase a home this year, you'll need to complete an additional form for your taxes. But don't worry--this won't make your taxes more difficult to file. In fact, the IRS has made this additional form very easy for homebuyers of all types to complete. You simply need to fill out the 5405 IRS form, and then claim the amount on one or two lines of your 1040 as well. With these two easy additions to your taxes, you'll be able to determine exactly what your tax credit amount will be.
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