First Time Home Buyer Tax Credit
After much debate, political sour grapes, and self-serving politics as usual, the American Recovery and Reinvestment Act of 2009 has been signed into law. The first-time home buyers tax credit that was part of the Housing and Economic Recovery Act of 2008 has been revised. Here are the highlights of the new credit:
- Credit Amount – Maximum increased from $7500 to $8000.
- Effective Date - The credit is effective for purchases on or after January 1, 2009 until December 1, 2009.
- Eligible Properties – Any single family residence, including coops, condos and townhouses, that will be used as a primary residence.
- Income Limit – The full amount of the credit is available for individuals with an adjusted gross income of no more then $75,000 ($150,000 on joint returns). It phases out above $95,000 for individuals and $170,000 for joint returns.
- First Time Home Buyers Only - This tax credit is for purchasers who have not owned a principal residence in 3 years previous to purchase.
- Recapture – If the property is sold within three years of purchase, the entire amount of the credit is recaptured at sale.
So, if you are a first-time home buyer who has been hesitant about buying your first property, this credit and the historically low interest rates we are experiencing now should be a good incentive to take the plunge into home ownership.
For more information about this tax credit or if need assistance with purchasing your first home, please give me a call at the number below or email me by clicking here.
