Tax Credits
Tax Credits Provide Outstanding Opportunities for Home Buyers
The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. It also authorized a tax credit of up to $6,500 for qualified repeat home buyers.
- Frequently asked questions about the $8,000 first-time home buyer tax credit.
- Frequently asked questions about the $6,500 tax credit for repeat home buyers.
- Some key points for prospective home buyers.
- Special rules that apply to members of the military, the foreign service and the intelligence community.
You can continue to stay informed of future home buyer information by joining us on the following social media sites.
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Tax Credits Provide Outstanding Opportunities for Home Buyers
The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. It also authorized a tax credit of up to $6,500 for qualified repeat home buyers.
- Frequently asked questions about the $8,000 first-time home buyer tax credit.
- Frequently asked questions about the $6,500 tax credit for repeat home buyers.
- Some key points for prospective home buyers.
- Special rules that apply to members of the military, the foreign service and the intelligence community.
You can continue to stay informed of future home buyer information by joining us on the following social media sites.
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$8,000 Home Buyer Tax Credit
Recently President Obama signed into law the American Recovery and Reinvestment Act of 2009 which:
- Provides a tax credit equal to 10 percent of the sales price of the home, up to a maximum credit of $8,000.
- There is no repayment provision for this tax credit unless the home buyer sells the home within the first three years of purchase. This was to protect against real estate speculators.
- The tax credit can be used on a first time home buyer’s principle residence. A first time home buyer is someone who has not owned a home for three years or more.
- Applies to homes purchased between January 1, 2009 and December 1, 2009.
For more detailed information on the first time home buyer tax credit, visit http://www.federalhousingtaxcredit.com
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$5000 New Home Buyer State Tax Credit
The new home must close during this period.
Purchasers of New Homes during that period will receive up to $5000 non-refundable tax credit (non-refundable means that the credit will go against a tax liability to the state).
The new home buyer must live in the home for at least two years or pay back the tax credit to the state.
There is a total program cap of $25 million. The tax credit program is over when that cap is reached or July 24, 2010, whichever comes first.
Purchasers are defined as anyone other that first time home buyers.
The new home must be the home owner’s principal residence. A new home is defined as either detached or attached and never been occupied.
Within seven calendar days after the purchase of a qualified principal residence, the qualified buyer shall submit via fax a completed application for the new home tax credit on forms provided by the Kentucky Department of Revenue.
For more information, call Bill Breeze at the Ky. State Revenue Cabinet at 502.564.7007.
To download the application, go to http://www.revenue.ky.gov
