$15,000 Home Buyer Tax Credit Passes In Stimulus Bill Of 2009
February 10, 2009 by Site Supervisor
Filed under News
See the final results of the Stimulus Bill 2009 / American Recovery and Reinvestment Act as it pertains to the housing tax credit.
‘‘ IN GENERAL.—In the case of an individual who is a purchaser of a principal residence during the taxable year, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to 10 percent of the purchase price of the residence.”
Tax Credit Details
You have one year from the passage of the Stimulus Bill of 2009 to take advantage of this tax credit. On your 2009-2010 tax returns you will be able to deduct $15,000 or 10% of the total purchase price for your home.
At the election of the taxpayer, the amount of the credit allowed under paragraph (1) (after application of paragraph (2)) may be equally divided among the 2 taxable years beginning with the taxable year in which the purchase of the principal residence is made.
See Sec. 1006 “CREDIT FOR CERTAIN HOME PURCHASES” pages 434 – 441 PDF 2009 Stimulus Bill
Who Qualifies:
Anyone
Pros
$15,000 tax incentive.
Cons
Must stay in the home for three years. If you sell within three years of purchasing you must prorate the amount. Must be primary residence.
The current FIRST-TIME HOMEBUYER CREDIT has been replaced by the tax credit.
Talk to your CPA about how the details will work for your situation.
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