Federal $8000 Housing Tax Credit Explained

by Jay Thompson on April 18, 2009 · Comments

in Home Buyer Tax Credit, Mortgage / Finance

We’ve discussed the $8,000 Home Buyers Tax Credit at length (see archive of several posts). But sometimes a video is worth more than 8 posts and 307 comments.

This video, from the Chief Tax Economist from the National Association of Home Builders, explains the major points pretty well. The FAQ referenced at the end of the clip is here.

If you’ve got any questions on the home buyer tax credit, fire away in the comments. I am not a tax professional, not do I play one on TV or the Internet, but I’ll answer what I can and point you where to find answers if I can’t!

Hat tip to my friend, the great Maureen Francis, at MiOaklandCounty.com.


 

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Thanks for reading! We value your thoughts and opinions, so please feel free to leave a comment. Please contact us if you have any questions or need help. You can also get automatic updates for this blog free via: Potentially Related Posts on Phoenix Real Estate Guy:
Using the $8,000 First Time Homebuyers Tax Credit as a Down Payment. Sort of.
$8,000 Home Buyers Tax Credit: What We Currently Know
Beware of Foreclosure Rescue Scams!

 




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  • RT @PhxREguy: Federal $8000 Housing Tax Credit Explained (new video posting on TPREG): http://is.gd/tcN4 ( very nice
  • this is an excellent blog. Thank you from a Reno Real Estate Agent.
  • With everyone hooked on video these days, hopefully this will help get the information to the masses. It also makes for a great reference point for first time home buyers who have questions.
  • Thank you for the video. That was pretty long, but it explained everything you need to know about the new tax credit.

    <abbr></abbr><abbr>Portland Real Estate´s last blog post..Bay 13</abbr>
  • Fantastic break down of the $8000 tax credit for first time buyers. You can write all day long about something like this but having it broken down in simple form with a video simplifies the whole thing. I have started using a few more videos on my site and the visitor not only seems to understand the issue better, they stay longer. Really nice video and blog. There's not a better real estate blog on the internet than The Phoenix Real Estate Guy.
  • Thank you for posting this video. It will be a great resource to some clients in case they ask about the first time home buyer credit.
  • That was a great video explaining the many rules of the tax credit; thanks for sharing! You can always find great resources for us all.
  • Great video for home buyers wondering if they qualify-putting it into video was a genius way to reach the masses.
  • A wonderful way to reach people that are more attracted to watching a video than to reading pages and pages of text to learn the quick, key points of the tax credit. Thanks for sharing the video!
  • I really like the video. In Ohio the state has even taken up a bill that would give first time home buyers additional tax credits on a state level.

    <abbr></abbr><abbr>Cincinnati Real Estate´s last blog post..Cincinnati Real Estate: Tax Credit For Vacant Home Buyers</abbr>
  • Wonderful video on the tax credit your government is offering for first time home buyers-it hit all the major questions very nicely.
  • Thank you for the video and great information.
  • Thanks for sharing the video:) It has answered most of the questions homebuyers are asking....
  • Great video on first-time home buyers tax credit details. It goes over alot of different scenarios and addresses most questions. Thanks Jay!
  • BPO
    Great way to generate some first time home buyers. Could be a pitch.
  • good explanation and a great video
  • Jay,

    It appears that your embedded video has been "removed by the user". I quickly searched, but I couldn't find another copy. The positive comments made me want to see it.

    Steve

    <abbr></abbr><abbr>Steve Lines´s last blog post..Top 10 Reasons College Graduates Should Use FHA Loans to Buy a House</abbr>
  • Well that is unfortunate! It was a very well done video... I looked around too Steve and can't locate another copy. Sorry!
  • Ha! Found another copy and have updated the post.
  • AlphaFemale
    I would like to purchase a house now that we have the opportunity to get the 8,000 tax credit. However, I will be moving out of the country to work starting April 2010. Will I have to pay by the 8,000 if I am not officially residing in the house. I would not be renting it out to anyone else. But since I am going to be working 12-months a year out of the country, does that mean the government will not consider the house my primary residence.

    Thanks in advance for anyone who replies to my question.
  • AlphaFemale - I would strongly suggest speaking to a tax adviser / CPA. Your situation is somewhat unique and you sure don't want to get into a repayment situation if it can be avoided. It will be much easier to set things up correctly in the beginning vs. after the fact. Seek professional help.
  • AlphaFemale
    Jay-

    Thanks for the advice. I spoke with the IRS and they indicated that as long as I do not sell the property or rent it out, it doesn't matter if I am working outside of the U.S. for the entire year because when I am in the country, this place would still be considered my primary residence.
  • Home Buying Blog
    Very good video, we offered information on the tax credit as well and found people were unsure if it could be used for a down payment abd yes the $8,000 tax credit can be used as a down payment
    <abbr></abbr><abbr>Home Buying Blog´s last blog post..Beware of Foreclosure Scams</abbr>
  • Leena
    I was wondering if I usually get $3000 back on my income tax and then I buy a house... do I get the $3000 plus the $8000 tax credit? So does that mean I will get $11,000 back on my 2009 income tax? Let me know please. Thanks!!
  • Great Find! Will share with my Minneapolis-St Paul Network!
  • susiej
    Can you tell me if there is a timeframe that you have to own the house before selling it in order to receive the credit? I may be moving out of the state in a year, but would love to buy a home now. Thanks!
  • Bill Ashley
    My son is active duty military and deploying overseas in November. Will there be an extended or deferred ending date for the housing credit for deployed military personnel? He is not scheduled to return to the U.S. until late spring 2010. Thanks - Bill , Seattle WA,
  • Bill - Sadly, I've heard no mention what-so-ever of any sort of extension for deployed military.
  • cofstead
    I have a question in regards to the new house tax credit. In 2000 we purchased a mobile home in Oregon. The home is still in our name, however we are renting it out. The mobile home is in a park and not on its own land. We are now in the process of purchasing a condo in Az. My question is will we be eligible for the housing tax credit?
  • No, you wouldn't be eligible. The credit is for first time homebuyers, defined as those that haven't owned a home in the last three years. You own a home right now. You're renting it out, but you still own it.
  • 1milker
    Can my brother buy a hosue he rents from me and receive the housing tax credit? Tax forms just say etc. when describing relations. Is selling to a brother not allowed if he wants the credit? Thanks, Nick
  • I think the video is great! gives a nice detailed explanation and answers some questions that other videos on the tax credit don't answer
  • groupsource
    While many housing groups support extending the housing tax credit, others worry that an extension would cause consumers to postpone their decision to buy, rather than responding the urgency of an expiring federal credit. Economists also suggest that expanding the credit to all buyers is less effective economically than the current first-time buyer requirement.

    http://betterblog.ning.com/profiles/blogs/feder...
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