First Time Buyer in Hagerstown, Maryland - $8,000 Tax Credit

First Time Buyers: $8,000.00 Credit:

1. $8,000.00 Tax credit: The newly approved tax credit is equivalent to 10 percent of the purchase price of the home, maximum $8,000 and applies only to first time home buyers of principal residences. It does not have to be repaid.

2. First time buyers: someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.)

3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit.

4. Income limits: The tax credit is subject to income limits. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, or $150,000 for married couples. Those earning more than those limits may be eligible for reduced credits.

5. Refundable: Because the tax credit is refundable, qualified buyers can still take advantage of it even if they don't have much tax liability.

6. Recapture: Buyers have to own the home for at least three years in order to qualify for the credit. If they sell the home before then, they will have to pay back the credit.

If you need any additional information, please send an email to jim.curry@longandfoster.com