Home Buyer Tax Credit Answers
We have been getting quite a bit of questions from home buyers recently about the "tax credit" which has changed forms many times of late. It is our understanding that President Obama’s $787 billion stimulus bill was passed into law last Tuesday will grant an no-repayment credit equivalent to 10 percent of the purchase price (up to $8,000) for first-time home buyers of principal residences between January 1st 2009 and December 1st 2009. This is unlike the previous $7,500 credit available to this group of buyers, the credit outlined in the American Recovery and Reinvestment Act of 2009 does not have to be paid back
Who is eligible: First-time homebuyers or anyone who hasn’t owned a principal residence for three years before buying a home. (Date of Purchase is the day the title transferred) There are also income limitations applied to eligibility. Single buyers must have a modified adjusted gross income of less than $75,000 or $150,000 for married couples to receive full credit.
What is my timeframe: In order to receive the $8,000 refundable tax credit you must purchase a property and have the title transferred before December 1st of 2009.
What property qualifies: Principal Residences, Vacation or Investment Properties. This can include single-family homes, condominiums, townhomes, apartments, and cooperatives.
