Florida Home Buyer Tax Credit Extension makes it through Congress
November 1, 2009
For Florida homebuyers this is great news! Congress both extended and expanded the First-Time Home Buyer Tax Credit program Thursday for Florida homebuyers.
The White House says the President will sign it into law.
The up-to-$8000 tax credit’s expiration date has been pushed forward to spring, requiring Florida homebuyers to be under contract before April 30, 2010, to take advantage and to be closed by June 30, 2010.
The program’s basic eligibility requirements remain the same:
- Florida Buyers can’t purchase the home from a parent, spouse, or child
- Florida Buyers can’t purchase the home from an entity in which they’re a majority owner
- Florida Buyers can’t acquire the home by gift or inheritance
- All parties to the Florida purchase must meet eligibility requirements
The new law includes some notable updates, however.
For one, the definition of Florida “first-time home buyer” has been expanded to include most homeowners with at least 5 years in their current Florida home. “Move-up” buyers like these are now eligible for IRS tax credits, but with a cap gain at $6,500.
This means that you don’t have to be a true Florida first-time home buyer to claim the “Florida first-time home buyer tax credit”.
Other eligibility changes include:
- The Florida homes sales price may not exceed $800,000
- The Florida home must be a primary residence
- Income thresholds raised to $125,000 for single-filers and $225,500 for joint-filer
And remember, the Florida First-Time Home Buyer program grants a tax credit as opposed to a deduction. This means that a tax filer would receive a cash payment of $2,000 from the U.S. Treasury if his “normal” tax liability totals $6,000 and he was eligible for all $8,000 available under the new tax credit law.
Questions related to home buyer
Can you keep the home buyer tax credit after selling your home and moving to a new home before the 3rd year?
Can you keep the home buyer tax credit after selling your home and moving to a new home before the 3rd year?
Meaning: buying your first home this year and qualifying for the tax credit. Then, 1 or 2 years later, sell the home, and move to another home. Or are you stuck in the same home for 3 years to avoid repaying the credit?
Unfortunately I don't think it will be retroactive.
See link below.
(I'm still going to be keeping my fingers crossed though, I would have qualified for the $6500)
Great ! Very responsive! This will be great to embed in my Blog thanx for being so on top of it!
http://www.federalhousingtaxcredit.com/index.html
this site helps a little, but i think you meant april 8, 2008 right and to claim the date is your closing date not move in or pre-approved loan, at least thats what i am told. now i saw on internet saying obama might have where we dont have to pay back the 7,500 who know i am trying to found out this too. so if your closing date was after april 8 2008 then u quilfy so get that money
This is great I just loaded it to my face book page
I agree.. house prices have dropped, but only a little and only in certain areas.. Consider that we are coming off of the biggest housing bubble the world has ever seen and comparing todays prices to 05 07 prices..well prices in alot of areas are still stupidly high.
My wife and I are waiting for the tax credit to end before we buy and interest rates to go up.. We would rather pay a high rate for an affordable house ..than pay a artificially low rate for an inflated house price..END Fannie and Freddie..and the FED NOW!! It should not take a BRIBE in the form of tax payers money to buy a house.
It is all crap. They are bribing you to buy a home worth of $100,000 dollars for $600,000 dollars. It is a big gimmick. WAKEUP AMERICA; DONT FELL INTO THSE CRUCKS HANDS.
Three years for the tax credit. From when you last owned a home.
The tax credit is a great gift for the real estate industry. It gets people out there to buy and sell, generating commissions. Congratulations, you’re milking billions from taxpayers and pushing people into houses they either a) were going to buy without the credit or b) couldn’t afford. Just disgusting.
Great job Margaret…..thanks for all the content and inspiration…..
while I will agree that prices were inflated between 2005-2007, they have dropped in most areas of the country to 2000 year prices in 2009 and now. This is a perfect time to take advantage of low housing prices, low interest rates plus the tax credit!
Usually one would want to put down 10% of the cost of the loan. Also what does your credit score look like? There are several factors to determine whether you can purchase the home. If your score is above 720, I would suggest going to your bank, they have lower fees for loans. Good luck!
No you may not. You own that house with her. Unless you have not owned & lived in that home for 3 years you are not eligible. If it has been rental property & neither one of you lived in it for 3 years you then you would qualify as a first time home buyer. Why would you think a co-borrower would not own the home?
Yes it is good towards any home. It is 8K if the house cost 80K or more. You just need to fill out the form 5405 on your 2008 tax return. It is simple easy 1 page form you could do in your sleep, no need to hire anyone to help. If you already filed your 2008 tax return you can just amend it and get the refund right after you close. Go to http://www.irs.gov and look up this form.
No. You must use the home as your primary residence for the full 3 years or else pay back the tax credit.
Both the taxpayer and the spouse must qualify as first time home buyers. If for example the spouse really only owned a vacation home not a full time personal residence they will still qualify.
No, I assure you this scenario wouldn't even be submitted to the mortgage underwriter. It just doesn't fit.
If anything, it makes it worse because once you say "rent" will be paid and it's a single family home, the purchase becomes an investment property and all the rules change.
Very difficult to come up with scenarios like this to fool the experienced underwriter who's job is on the line. She's going to weed through every crack in the file.
If you have funds you can give a buyer, then the buyer should get an FHA mortgage where gift funds are allowed – depending on who is giving the gift. If the buyer needs more than a seller credit for closing costs and a gift for the down payment, then perhaps it's not the right time for him/her to purchase.
Whatever you do, make it legal so no mortgage fraud is involved.
If you *don't* get married, and buy the house together, you would have to pick a credit and then split it. If you opt for her to get the $8000, she can apply for all of it. (And runs the risk of paying the entire amount back.) If you opt for the $6500 credit, the details aren't out, but presumably you would claim the entire $6500 and she would claim $0.
So, Can this be used towards a down payment to what i’m already putting down.
I can really see that the people posting these comments are fucking sheeple.