To recap what the credit is, it is a dollar-for-dollar reduction in what a taxpayer owes in taxes. For example, if you owe $8,000 in income taxes and you are eligible for the full $8,000 home buyer’s tax credit, you would owe absolutely nothing in federal taxes.

Its still a great time to buy.  Interest rates are still low and housing prices in Brooklyn are either flat are have risen slightly.   If you are looking to buy a house, condo or coop, give me a call and let me help you take advantage of the free money the tax credit represents.

If you buy a new home (house, coop or condo) in 2009, and close on or before December 1, 2009, you may qualify for an $8,000 tax credit.

The tax credit is a dollar-for-dollar reduction in what a taxpayer owes in taxes. For example, if you owe $8,000 in income taxes and you are eligible for the full $8,000 home buyer’s tax credit, you would owe absolutly nothing in federal taxes.

Here’s what you have to do to qualify:

1. Be a First Time Home Buyer – The definition of a first time home buyer which is being applied for this tax credit is someone who has not owned a principal residence in the past three years.
2. It Must be Your Principal Residence- Any type of home that can be used as a principal place of residence qualifies, that includes condos, coops and condops.
3. Your Income Matters – In order to qualify for the full $8,000 tax credit, a single taxpayer cannot have a modified adjusted gross income (MAGI) of more than $75,000. Married taxpayers filing jointly cannot have a MAGI of more then $150,000. For taxpayers with higher incomes than the maximum, the tax credit is reduced. Once your MAGI reaches $95,000 or more for single taxpayers, and $170,000 or more for married taxpayers, the credit is phased out completely.

Free money does not come along often. If you’re thinking about purchasing your first home, now is a great time to do it. For more information about the tax credit, please feel free to give me a call at 917-544-2662 or go to www.federalhousingtaxcredit.com.