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2008 Housing Assistance Tax Act
Is it a
Credit or is it a Loan?
2008
Housing Assistance Tax Act. It’s not a true
credit, but a loan!
Time is soon running out
on the current 2008 housing act which began in
April 1, of 2008 and will end July 1, 2009. It
is currently up for debate as to whether
congress will extend or amend this tax credit
for first time home owners.
Who qualifies for this
tax credit? A “first time homeowner” is
defined as follows; one who has not had an
ownership interest in a principal residence
within the previous three years. What this
means is, that if one owned a primary
residence prior to three years ago (measured
from the date of purchase) or a genuine first
time homeowner they can receive a credit equal
to 10% of the purchase price of the residence
home, not to exceed $7,500.00
Now keep in mind, this
is not exactly a free credit on your taxes
just for purchasing a new home! Taxpayers must
repay the tax credit at the rate of 6.67% per
year for 15 years. No interest is charged.
Repayment of credits claimed on a 2008 return
will begin in 2010 and in 2011 for a credit
claimed on a 2009 returns. Confused! A tax
credit of $6,000.00 would be repaid at the
rate of $400.20 per year for 15 years. (6.67
percent paid each year for 15 years).
The full amount of the
tax credit is available to single tax filers
with adjusted gross income up to 75,000.00,
with a phase-out of the credit up to
$95,000.00 (no credit available at this level
for single filer). Limits for persons filing a
joint return are full credit with an adjusted
gross income of $150,000., and phase-out up to
$170,000. (no credit available at this level)
If the amount of the tax credit exceeds the
individual’s tax liability for that year, then
a tax credit is received for the difference.
Individuals wishing to
learn more about this “Housing Assistance Tax
Credit” are urged to speak with their
accountant or tax preparer before filing for
your 2008 taxes. If you have made a purchase
within the guidelines spelled out above. There
is no pre-qualifying, simply claim where
indicated on your IRS 1040 form, plus
supplement forms for verification. The law
does allow anyone considering a purchase after
the April 15th deadline for 2008 to
elect the purchase to qualify as if purchased
before December 31, 2008. Purchases between
January 1, 2009 and June 31, 2009 can qualify
and or buy extension filings.
This can be a very
helpful credit and loan for folks who have
already purchased or are planning a purchase
of a primary residence within the first time
homeowners guidelines provided by Housing
Assistance Act of 2008.
Kathryn Shanaberger,
Southern Mountains Realty provide professional
full service real estate for residential,
vacation or investment properties located in
parts of western North Carolina and northeast
Georgia mountains. Looking for the perfect
location to purchase a vacation home, call to
learn more about the enchanting communities
nestled in the foothills of the Appalachian
Mountains. Visit Kathryn at
www.southernmountains.com, (828-837-1554)
read more from her blog dedicated to up-front
honest real estate advise and access to (2)
multiple listing databases covering these
beautiful mountains from Ellijay, GA to
Murphy, NC and beyond.
Kathryn Shanaberger
- Southern Mountains Realty
- 828-837-1554
-
mountains@dnet.net
Helping you buy and sell real estate in NC &
GA. Proud member of the National Association
of Realtors and a licensed broker in good
standing in the states of Georgia and North
Carolina.
Copyright©
February 2, 2009 Southern Mountains Realty
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