| The government's new stimulus, when it is all printed | | | | the deadline is December 1, not 31. |
| out, is a very large document. Somewhere in the midst | | | | The buyer's MAGI (modified adjusted gross income) |
| of all that paper are a few lines that can save | | | | must be less than $95,000 for a single person and |
| Americans hoping to buy a home a lot of money. | | | | $170,000 for a couple who file a joint return. |
| The Senate Approves a $15,000 Tax Break for | | | | The buyer's modified adjusted gross income (MAGI) is |
| Homebuyers | | | | less than $95,000 for an individual or $170,000 for a |
| Under the new stimulus package, qualifying first-time | | | | married couple filing a joint return to be eligible for the |
| homeowners will get a $8,000 tax credit. According to | | | | maximum tax credit. As the income level rises, the |
| the plan, if a person who has not owned a home | | | | amount of credit declines until the buyer's income is |
| before buys one this year, and they meet all the | | | | $95,000 and then no credit is available. |
| guidelines, they can get this tax credit. The real | | | | The homebuyer has to be purchasing a house that is |
| advantage to this tax credit is that it does not have to | | | | going to be lived in. The tax credit cannot be for a |
| be repaid. Under the old plan, homeowners who | | | | non-primary home, one that the homeowner is not |
| bought their homes between April 9, 2008 and July 1, | | | | planning to live in. The home can be a detached home, |
| 2009 were given a $7,5000 tax credit, but it was really | | | | a townhouse or condominium, a manufactured home |
| just an interest free loan that had to be repaid in 17 | | | | or a houseboat, but the homeowner must intend to live |
| years. The new tax credit is larger and does not have | | | | in it. |
| to be repaid, but it does come with a long list of | | | | The buyer must live in the home for at least three |
| requirements that covers everything from the date of | | | | years after the purchase date. The homeowner |
| purchase to the homeowner's income. | | | | cannot move, sell or leave the home for any other |
| $8,000 Tax Credit Eligibility Checklist | | | | reason for three years. Otherwise the tax credit must |
| The homebuyer must be a first-time homebuyer. | | | | be paid back. |
| Under this plan the definition of a first time homebuyer | | | | The home must be valued at $80,000 or more. The |
| is someone who has not owned a home for three | | | | plan states that the homeowner can get up to 10% of |
| years prior to buying this one. | | | | the home's value and to get the maximum of $8,000 |
| The house has to have been purchased during the | | | | the home must be worth over more than $80,000. |
| time between January 1 and December 1, 2009 | | | | Married couples can file separately and will get a |
| calendar year. This is an absolute. There are no | | | | maximum of $4,000 each. |
| extensions and homebuyers need to be aware that | | | | |