Wednesday, March 18, 2009
First-Time Homebuyer Credit
A tax credit is available for first-time homebuyers under the AmericanRecovery and Reinvestment Act of 2009. If you buy a home between
January 1, 2009 and November 30, 2009, you may be eligible to
receive a tax credit for 10% of the purchase price of your home—
up to $8,000. Program highlights include:
■ Any individual (and if married, their spouse) who has had no
ownership interest in a home during the last three years is eligible
■ Full credit for single taxpayers with incomes up to $75,000
($150,000 on a joint return); partial credit for incomes up to
$95,000 ($170,000 joint return)
■ Applies to the purchase of a single-family home (including condos,
townhomes, etc.) that will be used as a principal residence
■ Homebuyers can reduce (or even eliminate) their income tax
liability for the year of purchase by claiming the credit on their
tax return
■ If the home is sold before 3 years, the first-time homebuyer
(who is now the seller) must pay the IRS the entire amount of
the tax credit at closing
Labels: Buyers
posted by Monica Ruggieri at 3/18/2009
