$8,000 Tax Credit in Virginia Beach, Virginia
$8,000 Tax Credit is running out!
Something that you absolutely must know, the $8,000 tax credit will provide and outstanding opportunity for First Time Home Buyers. But don't get caught up in the fraud that is occurring. That is some buyers are not actually first time home buyers and are taking advantage of the credit. Many have been caught red handed. In one case a 4 year old child took advantage of the program.
The current tax credit that is available now is up to $8,000 and is available in most cases for qualified first-time home buyers. This applies to a buyer purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.
If you want all the details and desire to Learn how you can take advantage of the tax credit I can walk you thru the step by step procedure and hurry you on your way to buy the purchase of the home of your dreams.
Here is a really detailed video of the tax credit home buying process.
Top ten (10) questions about $8,000 Tax Credit.
Is everyone eligible to claim the tax credit?
No, only a first-time home buyer is eligible for the tax credit. If you are to qualify for the tax credit, you must purchase a home on or after January 1, 2009 and before December 1, 2009. To receive the tax credit, the date of purchase is the date of the closing and the same date the title to the property transfers to the first time home owner. There are some date variations when the home is purchased thru a contract for deed purchases and installment sale purchases. More information about this special case is available for the IRS website and provide many more addtional details.
Can you define what is meant by the term first-time home buyer?
A "first-time home buyer" is legally defined as a buyer who has not owned a principal residence during the three-year period prior to his new home purchase. If you are married, then the law tests the homeownership history of both the home buyer and his/her spouse. This means that neither of you can have owned a home in the last 3 years. IF you have owned vacation property, you may still qualify for not having owned a home in the past 3 years as long as the vacation home was not the principal residence of the buyer in question.
The amount of tax credit is determined by what methods?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The maximum you will receive is $8,000. However you may not qualify for the entire $8,000. For example if the home cost you $60,000 then you multiply the sale price by 10 percent and in this case $6,000 would be the maximum amount that you would qaualify for. So bottom line to get the full amount the home must cost a minimum of $80,000.
Is there a maximum income that will disqualify you from the tax credit?
Yes. Very definitely. If you are single you must make less than $75,000 and if you are married the cap is $150,000 if you are filing a joint return.
What is "modified adjusted gross income"?
The IRS defines the Modified Adjusted Gross Income. To calculate this, you must first determine the adjusted gross income. This is the total income minus allowed deductions. In most cases you will want to consult your attorney or tax qualified person to make sure you use all the deductions possible.
If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Yes, but it will require close calculations of your income. The amount you qualify for will be reduced by a percent of the amount you are over the limit.
Can you tell me the best procedure to claim the tax credit?
It's really not complicated to apply for this program. At the end of the year it will be claimed on your income tax return.
You will need to complete the IRS Form 5405 which will determine how much of the tax credit you actually qualify for.
Advance approval is not required and no other forms are required. Warning! Do not claim the tax credit for a vehicle that you plan to purchase in the future.
Will any home qualify for the tax credit?
Yes, almost any home can qualify as your principal residence. It may be single family, detached or any other domicile.
What is meant by attached homes is something like a townhouse.
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