2009 Stimulus Package
Congress passes great incentives for first-time home buyers.Home Purchase Incentive
You will receive a $8,000 tax credit if you are a first-time home buyer
(defined as not owning a primary residence in three years) and you
purchase a home between January 1, 2009 and December 1, 2009. It's actually
limited to 10% of the purchase price. However, since most homes are above
$80,000, it will be $8,000 for most people.
It does not have to be paid back if you stay in the home for three years.
This is a true credit, meaning it will reduce your income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to you.
It starts phasing out for couples with incomes above $150,000 or singles with incomes above $75,000.
The package also has other provisions that in effect provide more funding for home purchases.
The President and Congress also are working on other incentives to attract home buyers to the market.
Automobile Purchase Incentive
Part of the stimulus package provides tax filers with the ability to deduct
their sales tax if they purchase a new car in 2009. That could be several
hundred dollars to the average car purchaser. It also is a true credit, meaning
it could be a check to you.
Don't let an $8,000 federal credit pass you by. Now is the time to act to take advantage of the government 2009 home purchase incentive.