It is a
great time for first time home buyers to purchase a home. The
interest rates are at a all time low and home prices are down.
Also, 1st time home buyers can receive a tax credit of up to $8000!
A tax credit of up to
$8,000 is now available for qualified first-time home buyers purchasing
a principal residence on or after January 1, 2009 and before December 1,
2009. Unlike the tax credit enacted in 2008, the new credit does not
have to be repaid!
Details of the
tax credit include:
● The
Temporary credit is only available for home
purchases made from Jan. 1, 2009 to before Dec. 1, 2009 and is equal to
10 percent of the cost of the home, up to a maximum credit of $8000.
● Buyers claim
the credit on their federal tax return to reduce their tax liability.
If the credit is more than their tax liability that year, the buyer will
get a refund check for the balance.
● 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. For married joint filers,
both must meet the first-time homebuyer test to take the credit on the
joint return.
filers,
both must meet the first-time homebuyer test to take the credit on the joint
return.
● Eligible properties
include anything that can be used as a principal single-family
residence-including condos and townhouses.
● There are income
guidelines on the credit. Individuals with an adjusted gross income up to
$75,000 (or $150000 if filing jointly) are eligible for the full tax credit.
The credit is phased down for those earning more and is not available for those
with an income above $95,000 (or $170,000 if filing jointly).
● The new tax credit
does not have to be repaid if the buyer stays in the home at least three years.
But if the home is sold before that, the entire amount of the credit is
recaptured on the sale.
To take advantage of this perfect time for 1st Time Home Buyers, Please give me
a call today!
