Robert Stewart and Tax Stewart has found that the $787 billion stimulus bill that President Barack Obama signed into law a home buyer tax credit which is designed to help revive the real estate market. Tax Stewart discusses the things you need to know about the freshly-enacted $8,000 first-time home buyer tax credit.
Tax Stewart learned that this credit is equivalent to 10 percent of the purchase price of the home, although, it's capped at $8,000 and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.
Tax Stewart uncovered that the first time home buyers are defined, for the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.)
Tax Stewart states that only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.
Tax Stewart wants you to know there is income limits. The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.
Tax Stewart also wants you to know that buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. There is exceptions that will be made in certain cases, such as death or divorce.
This has been a public service announcement from Robert Stewart and http://www.taxstewart.com
