Does a house purchased with cash instead of a mortgage qualify for the 2009/2010 $8000 tax rebate?
by Mortgage Rates on Wednesday, October 27th, 2010 | 2 Comments
-
Mortgage Info
-
Updates
-
Useful Links
-
-
Tags
2010 About article Auctions bank banks best Business buyers change Credit Debt Equity Financial First fixed Foreclosure From good Government Help Home house Housing interest Loan Loans Market more Mortgage Mortgages Need News options qualify Rate Rates refi refinance Refinancing should this Time variable would-
Meta
Here are some answers to your questions:
The only restriction is that you must be a first time homeowner. It makes no difference whether you buy the house with cash or with a mortgage. There are no inspection requirements, but you must be able to occupy the house as your primary residence.
The tax credit applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.
The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
It is important to note that you cannot purchase a home from, among other family members, your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your spouse’s family members. Please consult with your tax adviser for more information. Also see IRS Form 5405.
You qualify for the credit with a cash purchase as well as a mortgage, as long as you meet all the other requirements. There are no inspection requirements, but you must occupy the home as your primary residence. So it must at least be habitable without the repairs.