Santa Clarita Valley Real Estate

How to get a valuable first-time homebuyer credit Congress included an attractive tax credit in the economic-stimulus law, but the fine print is tricky. Here’s help to see if you qualify, and to determine whether to claim it this year or next. By The Wall Street Journal The recently enacted economic-stimulus law contains an unusually attractive new tax break for many homebuyers — if they can only figure out how it works. The new law sweetens a provision known as the "first-time homebuyer credit." In essence, if you meet certain qualifications, you may be eligible for a tax credit of as much as $8,000. You also have a choice of claiming the credit on your federal income-tax return for 2008 or 2009. A credit is typically more valuable than a deduction, since it eliminates your taxes on a dollar-for-dollar basis — and in this case, you may get it even if you don't owe any taxes. But Congress made the homebuyer-credit fine print so devilishly tricky that m

The homebuyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on Feb. 17, 2009. The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser. Chart Highlighting the Major Modifications to the First-Time Homebuyer Tax Credit > (PDF: 309K) Frequently Asked Questions > (PDF: 483K) Download the IRS First-Time Homebuyer Tax Credit Form 5405 > (PDF: 257K) NAR's Presentation: The 2009 First-Time Homebuyer Tax Credit > (PDF: 319K) NAR's Presentation: The 2009 First

Senate approves $15,000 tax credit for homebuyers DAVID ESPO AP News Feb 04, 2009 20:54 EST The Senate voted Wednesday night to give a tax break of up to $15,000 to homebuyers in hopes of revitalizing the housing industry, a victory for Republicans eager to leave their mark on a mammoth economic stimulus bill at the heart of President Barack Obama's recovery plan. The tax break was approved without dissent and came on a day in which Obama pushed back pointedly against Republican critics of the legislation even as he reached across party lines to consider a reduction in the spending it contains. "Let's not make the perfect the enemy of the essential," Obama said as Senate Republicans stepped up their criticism of the bill's spending and pressed for additional tax cuts and relief for homeowners. He warned that failure to act quickly "will turn crisis into a catastrophe and guarantee a longer recession." Democratic leaders have pledged