There is a great article over at The East Valley Tribune website on how you may be affected by the stimulus plan. There is so much in that bill that it’s worth getting familiar with some of the practical elements. The article has information on the different tax credit provisions (relevant if you’re seeking a new car for example) as well as the refundable first-time homebuyer tax credit. Here is what you need to know if you’re seeking to purchase your first home this year:
Refundable first-time homebuyer credit. First-time buyers can claim a credit worth $8,000 — or 10 percent of the home’s value, whichever is less — on their 2008 or 2009 taxes. The added bonus is that the credit is refundable, which means that filers will see a refund of the full $8,000 even if their total tax bill was less than that amount.
Remember you are officially a first time homebuyer if you have not owned real estate in the last three years. So, it doesn’t necessarily have to be your very first home.
Also, here is a great video explaining the$8,000 first time home buyer credit.
Via “The Phoenix Real Estate Guy” and the amazing Maureen Francis (miOaklandCounty.com).