Tax Time: Take Advantage of the $8,000 Housing Credit

While many people know about the Federal Housing Tax Credit for First Time homebuyers, what many people don't know is that you can capture that credit for this year's tax filing. Buyers who complete their home purchase prior to April 15, 2009 can claim the purchase on their 2008 income tax return, as filed on or before April 15. Buyers can also file for an income tax filing extension for tax year 2008, so that home purchases completed in the months after April 15 can also be claimed on the 2008 return.

This is great news for anyone who is buying or looking to buy a new home in the immediate future, because it means that you don't have to wait a year to reclaim the $8,000 credit.

The tax credit may be claimed by buyers who have not owned a home in the previous three years prior to the purchase. The credit amount is equal to 10% of the purchase price, up to a maximum of $8,000. The credit is refundable — it can be claimed even if the home buyer has less than $8,000 in tax liability, and it is a true tax credit.Qualifying home purchases must occur on or after Jan. 1, 2009 and before Dec. 1, 2009. The program is subject to income phaseouts, which begin at $150,000 modified adjusted gross income for married couples and $75,000 for single taxpayers.

Interested homebuyers should look to www.federalhousingtaxcredit.com for more information and to this article from which the information was originally drawn.

Sphere: Related Content