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President Obama signed the American Recovery and Reinvestment Act of 2009 into law last week. Of note to potential home buyers and current home owners was Section 1006, which granted an “Extension of and Increase in First-Time Homebuyer Credit” as well as a Waiver of the requirement to Repay. Here are the details:
- The previous tax credit was given to those that purchased their first home up until July 1st, 2009. The new extension of the tax credit replaces that date with December 1st, 2009
- The previous tax credit was $7,500.00. The new tax credit is $8,000.00
- The previous tax credit was essentially a $7,500 loan from the government to be repaid over time. The new tax credit is does not require that you repay (with some exceptions…generally if you sell your home within a 3 year period from purchase).
- The effective date of this tax credit is December 31st, 2008.
To get more information on the original bill that the American Recovery and Reinvestment Act of 2009 revised, we’ve linked to a previous post of ours that explains the details of the old $7,500 tax credit
If you have any questions on the $8,000 tax credit and how it impacts you as a home buyer, don’t hesitate to ask.
Related Posts:
Your $7500 Tax Rebate | H.R. 3221, the “Housing and Economic Recovery Act of 2008″ | Why You Should Care Series – Post 2
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on Tuesday, February 24th, 2009 at 11:15 am and is filed under Finances, Home Buying.
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[...] UPDATE (2/24/09): Revisions have been made to this bill with the American Recovery and Reinvestment Act of 2009. After reading about this bill, read about the changes made here. [...]
[...] Your $8000 Tax Credit | What Buyers Need to Know About the American Recovery and Reinvestment Act of… [...]
Does the government send the first time qualified home buyer $8000.00 or is it applied towards the mortage principal?
I’ve been engaged in taxations for longer then I care to acknowledge, both on the individual side (all my employed lifetime!!) and from a legal stand since satisfying the bar and following tax law. I’ve provided a lot of advice and redressed a lot of wrongs, and I must say that what you’ve posted makes utter sense. Please continue the good work – the more people know the better they’ll be outfitted to cope with the tax man, and that’s what it’s all about.