This is just fresh off the grape vine. Congress is deliberating upon a package of items which would give a push to the housing market nationally. This incentive will give a major discount to the would be first time home buyers. The thing that caught my eye was that the bill, if it passes the floor of the house, would give a $8000 credit to the couple buying their first home and about $4000 to a single person if they buy a house.
The amount for the 8000 tax credit first time home buyer deal may sound small but consider that perhaps 4% of the population buys a home. That would mean 14 million buy houses. Now if you multiply that number with this tax credit break, it gives you an idea on how much money is going to be involved in this “8000 tax credit first time home buyer” deal. Not a bad sum by any means.
8000 Tax Credit First Time Home Buyer
And 4% is just hypothetical. The actual number may turn out to be even larger because of lot of population of renters is sitting on the fence looking to see which which way the housing wind blows.
For important information, Click Here > 8000 Tax Credit
According to the Initial plan for the “8000 tax credit first time home buyer” by the Obama administration, there was going to be a $15,000 tax credit for the new home owners but because of trying to make it a bipartisan effort and bring the Republican counterparts on board, the administration had to curtail it at $8000. According to the political hacks, the deal is still negotiable.
The federal tax credit program for home homers has been designed to cover qualifying home purchases between April 9, 2008 and April 1, 2009. But from what I know, there are going to be some restrictions and limitations attached. Keep an eye for those tiny asterisks which accompanies such things.
Assuming you qualify (buyers in previous year will be discounted),
1) The sum of your housing credit, and it changes every year, will be divided by two and hence into two tax returns. Therefore, two years.
2) The biggest catch will be, surprises of surprises, you may not qualify for complete credit. The parameters depend on your tax liability and how much you are really looking forward to pay to the IRS. Which implies the more you pay to the IRS, the higher tax credit you will be able to qualify for.
3) You will definitely qualify for this credit and hence claim it on your 2008 tax return.