Fisrt-Time Home Buyers Tax Credit

2009-06-06T04:32:00.000-07:00

Time is running out (most likely it will be extended for another year, just my guess!) for First Time Home Buyers Tax Credit.

The $8000 tax credit included in the Economic Stimulus package is set to expire on December 1, 2009. Here are some highlights related to First Time Home Buyers Tax Credit:

The tax credit is for first-time home buyers only. Per IRS defines a first-time homebuyer as someone who has not owned a principal residence during the three-year period prior to purchase.

The Tax credit does not have to be repaid.

The tax credit is equal to 10 percent (10%) of the home's purchase price up to a maximum of $8000.

The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.

Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

The credit does NOT have to be repaid, as long as the buyers stay in the house at least 3 years.

If you have already closed a sale, you do not have to wait until you file your 2009 tax return in order to get your tax credit. You can file an amended 2008 tax return, if your purchase fell within the specified time frame.

Some states allow the buyers to use "tax credit" towards the down payment. It is advisable that you consult your mortgage loan officer or you real estate agent.

For a detailed information on the First Time Buyer Tax Credit is available at: http://hubpages.com/hub/Empoweringmyself