IRS Says 1.4 Million Taxpayers Have Used First-Time Buyer Tax Credit
According to the National Association of Realtors®, 355,000 eligible sales would not have occurred without the credit.
Palm Coast, FL – September 21, 2009 – The IRS reports that about 1.4 million taxpayers have filed (or amended) their 2008 income tax returns claiming the $8000 first-time homebuyer tax credit. This is roughly consistent with the National Association of Realtors’® (NAR) projections that about 1.8 million taxpayers will claim the credit. NAR also estimates that at least 355,000 of eligible sales would not have occurred without the credit.
The IRS release also reminds taxpayers of the importance of getting to closing before the December 1 expiration of the credit and publicizes a YouTube video it has prepared to help taxpayers understand the basics of the credit.
NAR continues its full court press to extend the credit into 2010. This intense campaign will have major grassroots components to secure an extension of the credit as soon as possible to avert a slowdown in the market.
The Internal Revenue Service today announced the availability of video and audio products to help taxpayers take full advantage of the 2009 tax provisions in the American Recovery and Reinvestment Act. The IRS has launched a YouTube video site to view information about the Recovery, tax tips and how-to videos. The YouTube focus will be on the provisions of the American Recovery and Reinvestment Act. Videos will highlight the $8,000 first-time homebuyer’s credit for those who purchase a house this year, the sales or excise tax deduction on new car purchases and the expanded credits for education and energy conservation.
The IRS YouTube channel will debut with seven Recovery videos in English and ASL and eight in Spanish. Also, included will be a video on using the IRS Withholding Calculator. Many workers received the Making Work Pay tax credit in April through their tax withholding at work. However, people who have more than one job or working spouses should especially check their withholding to ensure neither too much nor too little is being withheld. People can use the calculator to help determine if they should make adjustments.
People can visit the audio site at iTunes to listen to IRS podcasts about ARRA tax credits. People without an iTunes account can hear those same podcasts, in English and Spanish, on IRS.gov’s Multimedia Center.
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Renew this!!!
I think NAR has probably under estimated how many of the 1.4 or 1.8 million sales only occurred due to the tax credit. I have no data but I can’t believe it isn’t more than they are reporting.
Regardless, even if it is 355,000 transactions that would not have occurred, that is a substantial number! Fixing the housing market will have a substantial impact on the rest of the economy moving forward so renewing the program makes total sense. It is a straight forward, clear way to truly stimulate the economy!!
2008 First Time Homeowner Tax Credit
Your article I believe contains inaccurate information as respects the tax credit for 2008. Here is the info I got from the IRS:
For 2008 Home Purchases
The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.
For 2009 Home Purchases
The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1.
For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer’s main residence within a three-year period following the purchase.
First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options.
My son just received his credit of $7,500 for 2008.
Lets do the right thing!
If you want to stimulate the economy and the housing market then we must have across the board incentives for both sellers and buyers in all price ranges.