Time is running out
First time homebuyers can claim a tax credit worth $8,000 as part of the Economic Stimulus
Package. The credit is effective as of January 1, 2009 and will expire December 1, 2009.
You must close and move into your new home by midnight, November 30, 2009.
First Time Homebuyer Tax Credit Information
Amount of Credit
Ten percent of the value of home or $8,000, whichever is less.
Refundable
No “repayment” required, unless home is sold within the first three years.
Eligible Property
Any owner occupied, single-family residence (including condos, co-ops) that
will be used as a principal residence.
Definition of First Time Homebuyer
A buyer who has not owned a principal residence during the three-year period
prior to the purchase. For married
taxpayers, the law tests the homeownership
history of both the home buyer and his/her spouse
Income Limit
Full credit is available for individuals with modified adjusted gross
of no more than $75,000 ($150,000 on a joint return). Partial credit
is available for certain modified adjusted gross incomes.
Termination
December 1, 2009