$8000 Tax Credit Free Money!
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Q:
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How much is the
credit?
The tax credit would be $8,000 or 10% of the purchase price,
whichever is less.
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Q:
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What type of purchase
is eligible?
Similar to the $7,500 tax credit included in the Housing and
Economic Recovery Act of 2008, the $8,000 tax credit included in the 2009
economic stimulus plan is available for the purchase of a principal residence by
first-time homebuyers.
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Q:
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Who qualifies for the
first-time homebuyer credit?
According to the IRS, any taxpayer who has not owned a home
during the 3 years prior to the date of purchase can qualify for the
credit.
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Q:
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And I really don't
have to repay the credit?
No. This is a change from the previous $7,500 tax credit.
However, if the home is sold within three years of purchase, the credit will be
reversed.
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Q:
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Are there income
limitations on the tax credit?
The tax credit begins to phase out for individuals with
adjusted gross income over $75,000 ($150,000 for joint filers).
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