Eligible for a Tax Credit?
More information about how the 2009 First-Time Home Buyer Tax Credit can help buyers obtain the American dream of home-ownership.First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009 qualify for the tax credit. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
The 2009 First-Time Home Buyer Tax Credit may be applied on purchases of primary residences, including single-family homes, condominiums, townhomes, and co-ops.
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by the two following factors:
- The price of the home – the credit is equal to 10% of the purchase price of the home, up to $8,000
- The buyer’s income – single buyers with incomes up to $75,000 and married couples with incomes up to $150,000 may receive the maximum credit.
Some buyers with income exceeding these limits may still be eligible for the credit. The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income- over $95,000 for singles and over $170,000 for couples are not eligible for the credit.
The best news is the tax credit does not have to re-pay as long as the buyer occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.
For additional details regarding the new tax credit, contact your financial advisor. You can also read more about the housing bill by going the web site of the National Association of Realtors at http://www.realtor.org/.
For information about what's available on the market, contact the Beverly-Hanks & Associates office nearest you