Thinking about buying your first home? Act today and the government will give you FREE money in the form of a tax credit or downpayment. No, you're not dreaming! As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first time homebuyers. You have until November 30, 2009 to find a home, secure financing and close the transaction to receive your $8,000 tax credit. Q. Who Qualifies? A. First-time home-buyers who purchase homes between January 1, 2009 and December 1, 2009. To qualify as a "first-time home buyer" the buyer or his/her spouse may not have owned a residence during the three years prior to the purchase. Q. Which Properties Are Eligible? A. The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes and co-ops. Q. How Much Will the Credit Be? A. The maximum allowable credit for homebuyers is $8,000. Each homebuyer's tax credit is determined by two factors: The price of the home - the credit is equal to 10% of the purchase price, 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 tax credit. Q. If the Buyer(s)' Income Exceeds These Limits, Can He/She Still Get a Credit? A. Yes, some buyers may still be eligible for the credit. The amount of the credit decreases as income approaches the maximum limit. Homebuyers earning more than the maximum qualifying income - over $95,000 for singles and over $170,000 for couples - are not eligible for the tax credit.
Q. Will the Tax Credit Need to Be Repaid? A. No. The buyer does not need to repay the tax credit, if he/she 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.
Interested? Want to learn more? Call Wendy Cowan Today! Source: National Association of Realtors, Government Affairs Update, FAR Realtor Magazine |