Get Your $8,000 Federal Tax Credit This Year

by Rodney Forbes on May 8, 2009

The popular First Time Home Buyer Tax Credit of 2009 has a slightly interesting twist that most people don’t know about. Even though the credit is for homes purchased by December 1, 2009, the tax credit can be claimed on your 2008 tax return! This is a great incentive for those still sitting on the fence about a home purchase.

From the Palm Beach County Real Estate Council, the following tips:

First-time homebuyers those who haven’t owned a principal residence in the past three years can file to receive a tax credit worth 10 percent of their home purchase, up to $8,000. The credit is claimed on the buyer’s federal tax return and is refundable, which means the consumer receives a refund for the amount of the credit less his or her tax liability.

Request a federal tax extension: The tax credit can be applied to homes bought this year before Dec. 1. But what if your purchase is after the April 15 federal filing deadline? You could request a six-month extension to file by Oct. 15. This is faster than waiting to claim the credit on your 2009 tax return.

Know your limits: The tax credit comes with income limitations. Explore these if your purchase decision is based on the credit. Married couples are limited to modified adjusted gross income of $150,000 to qualify for the credit. Single buyers need a modified AGI of $75,000 or less to access the full credit. Those earning above those limits may be eligible for reduced credits.

Source: Boca Raton News

If you are interested in buying or selling a home in the Palm Beach County area, specifically Palm Beach Gardens, Jupiter and West Palm Beach, please visit my Forbes Realty website. For frequently updated information on foreclosures, short sales, real estate news and market conditions visit my South Florida Real Estate Report blog. There are many free reports as well as free access to MLS listed properties. You can also call 561-337-4810.

 

Rodney Forbes is a licensed Realtor®, certified short sale/REO specialist and broker for Forbes Realty of South Florida Inc.

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