The $8000 is a tax credit. You will get it as part of your 2009 tax return unless you have already purchased and try to apply it to 2008. Also, I think you can get it this year if you file an extension for you taxes. You would have to talk to your accountant to know for sure. What is for sure is it is FREE MONEY. You are getting $8000 from the government to purchase a home in 2009. You have to be a first time home buyer or have not owned a home in 3 years to qualify. It comes with your tax return. Hope this helps.
Vanguard GMAC Realty
Hope this helps!
***Up to a $8000 tax credit to First Time Homebuyers***
The provisions in the bill pertaining to the tax credit for first time home buyers are as follows:
* The $8000 tax credit is available only for first-time home buyers
(Definition of a "first-time home buyer" is a buyer who has not owned a
principal residence during the three-year period prior to the purchase)
* There is a $75,000 adjusted gross income limit for tax filers filing
separate and $150,000 limit for joint return filers.
* The $8000 tax credit is available only for primary residence purchases.
* The tax credit does not require a repayment for most cases.
* The tax credit does have a repayment provision if the homeowner
does not occupy the property for a minimum of 3 years from the
* The home buyer must purchase a home between January 1, 2009 and
December 1, 2009.
* The $8000 tax credit is received when you file your tax return.
How does the credit affect the taxes you owe and the refund you get?
The credit reduces your tax liability, that is, the amount of taxes you are required to pay. Depending on your tax withholdings, you could get a bigger refund or owe less in taxes when you file.
Mary Beth Schillig
Prudential Network Realty
If your son has a closing pending and has not yet done his tax return he can apply for the refund now and get his check or if he has done his return he can get it amended. He will be entitled to the full $8,000 as long as he is buying a property that costs more than $80,000, has not owned one for at least 3 Years and if he does not sell his new home for at least 3 Years he will not have to repay it either. (If his home costs less than $80,000 he gets 10% of the purchase price).Hope this helps.