How do i get the 15,000 homebuyer's tax credit?

Question

When do you have to have bought the home and when do you get the credit?

Answer 1

Actually, you do not have to wait until next year to claim your $7500 tax credit, if you purchased your house Jan.1,2009 or later. Lisa said that you wait until filing taxes for 2009 (receiving the credit next year) if you purchased AFTER Dec.31,2008. That is not true. You can still claim the New Home Buyers Credit right now on your tax refund if you purchased your home last month, this month or are planning on purchasing a home in the near future. You must provide that address of the home you are purchasing, and show proff of purchase price ect.(Purchase Agreement ect). I am closing on a home February 27th,2009...and have already received the extra $7500 tax credit, just a few days ago. Now, if you end up NOT following throught with purchase of the home, loan falls through ect...you are held accountable for repaying the 7500.00 when you file taxes next year.

Answer 2

There is much confusion out there regarding this. Most of that confusion stems from the fact that there is a current $7500 first time buyer "tax credit" in effect. I put "tax credit" in quotes, because it is in reality a 15 year interest free loan. It has to be paid back.

Yesterday, the Senate passed an amendment that increases the credit to up to $15,000, removes the first time buyer stipulation and removes the repayment. It is a true tax credit (assuming it gets past the House and the President signs it -- which it looks like it will).

There also appears to be additional language that would require the home buyer to have put at least 5% down, which will eliminate most FHA mortgages as they typically only require 3.5% down).

As the amendment is currently written, this credit would only apply to the purchase of a primary residence. So no investor property would qualify.

Importantly, it's not a law yet, and is subject to change before/if it passes.

Answer 3

The economic stimulus package was amended in the Senate to add this provision, but it still needs to pass the House.

If it passes both Senate and House and is signed by President Obama, it would be a $15,000 tax credit for any home purchased in 2009 as a primary residence.  You'd need to hold on to it for two years or be required to pay it back.  Not just for first time buyers.  

You should be emailing your Rep in Congress NOW, urging them to keep this provision in the stimulus package.  It would obviously have a huge impact on many, many of us - and would go a long way toward getting the real estate market moving again!  Our folks in DC need to know if you care about this.

Answer 4

I agree with most of what Tyler has said.  I have not read that the 7500 will become "free" but that would be cool.  Also I didn't know you could claim with a house you will be closing on...I would be careful with that.  The details of this new tax credit are changing everyday so don't count on anything until the bill is signed.

It is my understanding that the $15000 it is NOT retro active. The new bill will be active from the day the bill is signed and for a year thereafter. Also this is not the same as the $7500 tax credit already in place. The $7500 you have to pay back, the $15000 you do not.

HOWEVER this is where a lot of people don't understand. Just because you buy a home for $150,000 doesn't mean you will get a check for 15,000. You will only get back what your tax liability is for the year you claim it.

For example if you paid the government $5000 in taxes in 08 and you break even (they don't owe you, you don't owe them) then they will give you that $5000. You can do that for 08, 09 or 09,10. If your taxes end up the same for the following year, then total you will get $10,000 dollars. For people like myself who are single and don't make a lot of money I would only get about $4000 total.

It is very deceiving so be careful where you get your information from.