What is the difference between $7,500 & $8,000 tax credits for first time home buyers? (Home Loans)

0 Votes

Advisor: Sanda Hnatjuk-Bahic, Real Estate
Jun 25, 2009

10% of purchase price not to exceed $8,000 is federal home buyer's tax credit and is available January 1, 2009 to November 30, 2009, inclusive.

A repayable $7,500 tax credit was available for purchases from April 9, 2008 to December 31, 2008.

A State of California tax credit of 5% of the sale price, up to $10,000, is now being offered to qualifying people purchasing newly constructed, previously unoccupied homes.

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Advisor: Rada Roberts, Real Estate
Jun 25, 2009

Before they passed the bill for the $8000 tax credit they had a $7500 tax credit. The $7500 tax credit is a loan that has to be paid back $500 a year. It is a 0 interest loan. The $8000 tax credit is 10% of the purchase price and a maximum of $8000. It is a total tax credit that you recieve thru your tax returns. You need to check with your accountant but I think you can ammend your tax returns for 08 and get the tax credit now.

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Advisor: Marshall Ghant, Real Estate
Jun 25, 2009

Before they passed the bill for the $8000 tax credit they had a $7500 tax credit. The $7500 tax credit is a loan that has to be paid back $500 a year. It is a 0 interest loan. The $8000 tax credit is 10% of the purchase price and a maximum of $8000. It is a total tax credit that you recieve thru your tax returns. You need to check with your accountant but I think you can ammend your tax returns for 08 and get the tax credit now.

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Advisor: Igor Jekauc, Tax Planning
Jun 25, 2009

$7500 credit was for purchases made in 2008 and the $8000 credit is for purchases made in 2009. Also, the $7500 credit eventually has to be repaid to the government (interest free) where the $8000 credit does not have to be repaid if you use the home as a primary residence for a certain period of time. Congress is actively working on a new credit up to $15,000 which may extend through 2011 and will in all likelihood include all taxpayers and not just first time homebuyers.

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Advisor: Mark Goldman, Home Loans
Jun 25, 2009

It depends on the tax year when you bought your home. The $8,000 amount is for homes purchased in 2009. Consult with your tax adviser for special rules.

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Advisor: Vladimir Raicevic, CPA, Tax Planning
Jun 25, 2009

The 7,500 credit was for purchases in 2008 and must be repaid over a period of time starting in 2010 in $500 increments (15 year payback, it really is a interest free government loan). The 8,000 credit is for 2009 and ends on 12/1/09. The credit is not refundible. * Beware both credits have rules if you sell the home before certain holding periods are met. Not all buyers will qualify based on previous ownership periods and income limitations.

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Advisor: Dave Kramer, Home Loans
Jun 25, 2009

the new $8000 credit does not need to be paid back. this is available until end of November, I believe.

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Kristina Milano
Jun 25, 2009

The Senates $15,000 homebuyer tax credit has been stripped from final version. In it's place is an $8,000 tax credit for first time buyers. Note that this credit does not need to be paid back, unlike the original $7,500. To qualify the purchase has to be made between Jan 1, 2009 and before Nov 30, 2009 and you have to stay in your home for 3yrs. This is a refundable tax credit, and it's phased out for individuals with AGI of 75k or higher or couples with AGI of 150k or higher.

0 Votes

Advisor: Steven Leibold, EA, Tax Planning
Jun 25, 2009

The $7500 credit was for houses bought after 4/18/2008 and before 12/31/2008. That credit amount was only for tax year 2008 and must be paid back over 15 years starting 2010. The $8000 credit is for houses bought 1/1/2009 through 12/1/2009. This $8000 credit does not need to be repaid.