Have you been wondering how the Obama “Stimulus Package” affects you?  Not everyone is eligible, but if you are buying a Home this year, you just might be. Below are a few questions and answers that many people have about the $8,000 tax credit.

7 important questions and answers about the $8,000 Tax Credit from Obamas Stimulus Package include:

 

• Will I be able to get the money as a refund on my taxes?  Yes, the credit is refundable.  If you qualify then you will either get a refund, or the money will be used to offset the taxes you owe.
• Do I get the whole $8,000?  The tax credit is either 10% of the homes value or $8,000. Whichever is less.
• What if I bought a house before, am I still a 1st time Home Buyer?  A “1st time home buyer” for purposes of Real Estate (and both the previous and current tax credits) is someone that hasn’t bought a home in the past 3 years.
• When do I have to buy a home in order to qualify for this credit?  This credit is for homes that are bought between Jan.1st and Dec.1st  and close escrow before the end of the year. 
• Do I have to live in the house to get this credit?  Yes, you have to live in the house as your primary residence for at least three years.  If not you may have to pay the money back.
• How do I file for this $8000 credit?  You would file as usual, and fill out the revised version of IRS form 5405. If you already filed your taxes for 2008 you can file an amended return and claim the credit, or claim it on next years tax return.
• Are there any Income Limits?  Yes, a buyer cannot make more than $75,000 or $150,000 for couples that file a joint return.

 

*Anyone that wants to buy in Central Oregon to take advantage of the $8,000 tax credit might want to read this Post about things to consider before buying.


*If you are a 1st time Home Buyer thinking of buying a home in CA, the following Article might be of interest to you.  CA is the only State offering a Mortgage Protection Plan.  The CA Mortgage Protection coupled with the $8,000 tax credit is a great reason to buy a Home now, and that’s not even counting low interest rates and home prices!