Key Details of the $8,000 Federal Tax Credit for Utah Homebuyers
- Buy a home between January 1, 2009 and December 1, 2009.
- Get $8,000 Federal Tax Credit when you file your 2009 Tax Return (or sooner, see below).
- This does not have to be repaid.
- If you and your spouse make a combined income of less than $150,000 annually (or if you are single and make less than $75,000 annually), you qualify for the full $8,000 tax credit. If you make more than that, you may qualify for a partial tax credit.
- You may not have owned a home during the past 3 years to qualify. (Nor may have your spouse, if you are married.)
- The credit is 10% of the purchase price of the home, up to $8,000. In other words, if you buy a home with a purchase price of over $80,000, you should get the full $8,000 credit.
- The tax credit is refundable. That means that if you owe no taxes, you can choose to have the government send you the $8,000 as a refund.
- You can elect to claim the tax credit on your 2008 return, meaning you can get the credit this year, even though you didn't buy the home until 2009. This may be helpful to those who know that they will make more than $150,000 combined (or $75,000 solo) in 2009. (Assuming they made less in 2008). It also means you can get your $$$ a year earlier.
- If you closed on a home early in 2009 and have already filed your 2008 return, you can submit an amended return. (I recommend having a professional accountant help to make sure you do this right.)
- If you bought your home between April 9, 2008 and December 31, 2008, you cannot claim the $8,000 tax credit that does not have to be repaid. You can still claim the $7,500 tax credit (read: interest free loan) that does have to be repaid over 15 years. Sorry. Call your congressperson to complain.
The form to use (and where you can get the details on how this credit works) is form 5405 from the IRS website.
I'm happy to answer any questions you might have about anything to do with buying a home in today's economy.
Buying a home in Salt Lake City or the Surrounding Area? Make sure you get an Agent on YOUR side of the transaction!
If you have excellent credit and will be buying a $300,000-$800,000 home in the next 90 days and would like an agent who will work exclusively for you, call us at (801) 969-8989 or contact us via the link on this page.
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©2008 Homebuyer Representation, Inc. - Salt Lake City, UT
Exclusive Buyers Agents (EBA) - All Rights Reserved