Economic Recovery Act. And Blumenauer said that the credit was “claimed by nearly 1.5 million households to assist in their purchase of a home.” Text for the bill says that first-time homebuyers of a principal residence in the U.S. could claim a tax credit equal to 10% of the purchase price of the tax residence during that tax year. However, this tax credit cannot exceed $15,000. Depending on your tax-filing status, the bill limits the credit to $7,500 for married individuals filing separately. You should note that as of December 2021, the bill still needs to be approved in both chambers of Congress before it can be signed into law by the president.
PENALTY-FREE IRA WITHDRAWALS FOR FIRST-TIMERS -TIMERS
Disclaimer - Please check with a li h a licensed tax advisor to make sure the following options are available and whether you qualify for them. As of this writing, first-time homebuyers are eligible to withdraw $10,000 during their lifetime from their Individual Retirement Accounts (IRAs) without paying the 10% penalty for withdrawal before the age of 59½, assuming certain requirements are met. The biggest requirement is that the money must be used to buy or build a primary residence (not a vacation home). If you have a traditional IRA, you’ll have to pay income tax on the money withdrawn. Roth IRA accounts, however, aren’t subject to additional taxes as they are funded with money that has already been taxed. The $ 10,000-lifetime amount that can be withdrawn penalty-free from an IRA is specific to each individual; this means a couple could withdraw $20,000 combined to pay for their first home. The person withdrawing also doesn’t have to be the future homeowner — a person under the age of 59½
116
Powered by FlippingBook