Thursday, February 12, 2009

$8,000 Home Buyer Tax Credit

It appears the home buyer tax credit will be $8,000 for first-time home buyers (which is usually defined as someone who hasn't owned a home in 2 or 3 years). This credit does not have to be repaid and is also refundable, meaning even if you don't have $8,000 in tax liability you will still receive the full credit. The credit applies for the borrowers if they closed between January 1,2009 and December 31, 2009. There are income limits as well of $75,000 for singles and $150,000 for couples but I am not sure if that is a hard cut off or a phase out.

3 comments:

Noz said...

Well...my wife and I make more than the limit so I guess we are out of luck there....even though we were responsible, saved money, and didn't flip and screw people.

Makes me want to buy a home and feed into the system even less.

Effective Demand said...

Noz,

If I remember correctly you were going to look in the Glendale/Burbank area. I was looking at layoff notices the other night and noticed that a lot of layoffs are coming to the Burbank area, Yahoo! and a lot of studios are laying off. That should loosen up the market some later this year.

http://www.edd.ca.gov/Jobs_and_Training/warn/eddwarnlo09.pdf

Noz said...

Effective:

Thanks for the heads-up. Yes we actually live in Glendale. I know where Yahoo is ..right across from the Burbank Airport.

Interesting times. I'm not a Burbank person but I'll check it out for sure. A lot of studio people also live in the Toluca Lake/Valley Village area. Lot's...LOT'S of overpaid people there.

I took a look at that list..wow...layoff galore in Burbank.