West Bloomfield

1.  First Time Homeowner is still 3 years.  It also states if you are MARRIED THAT YOU & YOUR SPOUSE cannot own a home in the past 3 years!!!!!

2. Must live in it.

3.  $75,000 individual/$150,000 married income limits for full $8000.  Can get partial credit if income is sub $95,000 individual/$170,000 married.

4.  Bond Loans are able to get credit now ($7500 did not allow it)

5.  Nonresident Alien will not receive credit.

6.  Acquired home by gift or inheritance does not qualify

7.  Acquired home from a related person does not qualify. Related person is defined as:
a.   spouse, parents, grand parents, children, & grandchildren.
b.   own 50% or more of outstanding stock w/ another person.
c.   have a partnership business in which you directly or indirectly own 50% of capital interest or profit interests.

8.  Credit is $8000 if closed post 1/1/09.  Credit is $4000 if married but file separately.  Credit max is 10% of purchase price up to $8000.  See IRS rules on Modified Adjusted Gross Income.

9.  No repayment if:
a.  live in home 36 months
b.  also please refer to specific info on page 2 of IRS form (Homes purchase in 2009 section) on other situations on no repayment.

10. Exceptions to repayment rule (pre 36 mo’s):
a.  if you sale home to someone you are not related to, the penalty is will be the gain on the sale up to $8000.
b.  if home is destroyed, condemned, etc. & you get another home w/in 2 years no repayment.
c.  in a divorce, the spouse who receives the home will be responsible for the repayment.
d.  if you die repayment is not required.  if you have a spouse they will have to repay half of their credit.

11. Form requires date you acquired the home.  So must have property prior to getting credit.

12. You can close in 2009 & modify 2008 taxes so you get $ in 2008.

Again, please note US Bank is NOT a Tax Advisor.  Above we itemized some bullet points & attached their 5405 Form.  So any questions on the Tax Credit Info above HAS to be referred to a licensed CPA or IRS.  I am sure more questions/answers will arise from the IRS .  As we hear them, we will forward that info as it’s received.

The government, in their effort to help move our housing market, has decided that a first time home-buyer can get a tax credit of up to $8000 if purchasing a home from January 1st to December 1st of this year.  It also has to close no later than December 1st, 2009. Their definition of a first time home-buyer is someone who has not purchased a home in the last three years. There are also some income restrictions that come with this tax credit. You cannot get the full credit if you make over $75,000 per year as a single person or $150,000 a year per couple. The credit will be shaved down as your income goes higher.

The credit is up to 10% of the house price but no more than $8000.  The best news is that if you do not move for at least three years, the credit does not have to be paid back. Obviously, it is always best to check with your accountant as this news is just filtering down and should be clarified for each particular case. It is definitely a good step in helping some of those first time home-buyers in West Bloomfield today make a decision to buy now and not to wait until next year.  Even if the pricing gets a bit more depressed, they have a good incentive to balance the scales.

The previous tax credit from last year was limited to $7500 and did have to be paid back over a 15 year period.  Hopefully, some new legislation will change that to make it more fair for the people who did buy and close last year.

There are a lot of homes on the current West Bloomfield market with fabulous pricing.  Now a first time home-buyer may also get this tax benefit making for a win-win buying situation. Actually, with the interest rates so low that is even more reason to decide on purchasing in West Bloomfield now. Let me know if I can help!