First Time Buyer Tax Credit
The American Recovery and Reinvestment Act of 2009 features an $8,000 tax credit for first-time buyers who purchase on or after Jan. 1, 2009 and before Dec. 1, 2009.
Details of the tax credit includes:
- The temporary credit is only available for home purchases made from Jan. 1, 2009 to/before Dec. 1, 2009 and is equal to 10% of the cost of the home up to maximum credit of $8,000.
- Buyers claim the credit on their federal tax rerun to reduce their tax liability. If the credit is more their total tax liabililty that year; the buyer will get a refund check for the blance.
- Only first-time homebuyers can take advantage of the tax credit. A first-time buyer is defined under the tax credit as an individual who has not owned a home in the last three years.
- Eligible properties include anything that will be used as a principal single-family residence - including condos and townhouses.
- There are income guidelines on the credit. If this peaks your interest, please call me.
- The new tax credit does not have to be repaid if the buyer stays in the home at least three years. However, if the home is sold before the three year stipulation, the entire amount of the credit is recaptured on the sale.
If you would like to learn more about the First Time Buyer Tax Credit, fill out the form below and I would be glad to assist you.
