Chicago Home Buyers: Buy a House get some Dough (Maybe)
Ahhhh…the stimulus package. Better known as the “American Recovery and Reinvestment Act.” The centerpiece of Barack Obama’s first hundred days in office. And maybe a big slice of dough for you…if you buy a house…maybe.
Here’s the quick and dirty:
-You’ll probably qualify for the full $8,000 credit unless you’re buying a mobile home or a dog house.
-If you’re married and you and your spouse combine to make more than $175,000, don’t pass GO and don’t collect $8,000 (or single and you make more than $95,000). In this case, you’re completely phased out of the credit. Partial phaseout begins at $150,000 for married couples and $75,000 for single folks.
-You don’t have to be married to take the full credit and it can be allocated among the non-married purchasers, but if you buy a house with someone you’re not married to then you better have an attorney prepare a cohabitation agreement.
-The credit is only good for purchases of principal residences…so it’s no good for buying a cottage on Lake Geneva.
-This is theoretically a “first-time homebuyer credit” but IRS is funny, and they define “first-time homebuyer” as anyone who has not owned a principal residence in the US for three years prior to closing on the new home.
-Oh…and if you want to get the credit, you need to close on a home on or before November 30, 2009. Having a contract isn’t good enough…you have to actually close before the deadline.
So there it is…your tax dollars coming back to you to buy your own little slice of heaven.
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