Thursday, February 19 2009
Here we have the latest information on the American Recovery and Reinvestment Act of 2009 that passed this week. The PDF “Chart Highlight” below illustrates the differences between the tax credits of 2008 vs. 2009.
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Homebuyer Tax Credit
The bill provides for an $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.