Be careful when filing your taxes, make sure you know which version of the first time home buyer tax credit you used.
PERSONAL FINANCE
First-time home buyers could save good money on their 2008 income taxes, maybe enough to buy furniture, but they must wade through confusing tax breaks.
For ’08 first-time buyers, only one type of credit could apply. Yet if you buy a home this year before Dec. 1, you could use another break on the 2008 or 2009 return.
If you bought in 2008, know that the first-time buyer credit must be repaid.
“It’s very much like a tax-free loan,” said Mark Luscombe, principal analyst for CCH in Riverwoods, Ill.
The credit could apply if you bought the house after April 8, 2008, and before Dec. 31, 2008. Vacation homes don’t qualify.
A first-time home buyer is someone who has not owned a home within the last three years.
The credit amounts to 10 percent of the purchase price, up to a credit of $7,500 for either a single taxpayer or a married couple filing a joint return. The maximum credit is $3,750 for married persons filing separate returns.
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1 comment:
Does the credit need to be repaid like last year’s?
What is the effect of the credit on my tax return?
Do only low income families qualify?
How do I apply?
These questions and more answered at http://lilaccityrealestate.com/index.php?page_id=273
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