If you've been sitting on the sidelines - waiting to buy your first home - or, you haven't owned a primary residence during the prior three years, the time to act is now! Home prices are down, interest rates are historically low, and a tax credit (up to $8,000) is available to qualified first time home buyers. Now just might be the right time to buy! But time is running out on the $8,000 tax credit and you'll have to act soon if you want to take advantage of this opportunity.
You've heard the saying, "Time Flies." Well, December is just around the corner. If you're a First Time Home Buyer, you may be eligible for a tax credit of 10% (up to $8,000) of your home's purchase price. But, you must buy before December 01, 2009.
$8,000 HOME BUYERS TAX CREDIT HIGHLIGHTS:
• For first-time home buyers only - buyers who have not owned a principal residence during the three-year period prior to the purchase.
• No Repayment - tax credit does not have to be repaid unless the property is no longer being used as a principal residence within the 36-month period beginning on the purchase date.
• Refundable Tax Credit - 10% of the home's purchase price up to a maximum of $8,000.
• Purchased Period - close on or after January 1, 2009 and before December 1, 2009 (Expires November 30, 2009).
• Income Limitations- Single taxpayers with incomes up to $75K and married couples with incomes up to $150K qualify for the full tax credit. Tax credit is phased out for individuals with MAGI of $75k or higher (up to $ 95K) or couples with MAGI of $150k or higher (up to $170K).
• Claim Credit - The credit is claimed on new IRS Form 5405 (First-Time Homebuyer Credit), and filed with your 2008 or 2009 federal income tax return.
For more information, please check out these links.
Update - New legislation in November 2009 has extended and expanded upon the $8,000 tax credit. If you have purchased or plan to purchase a home after November 6, 2009, you may also want to check out the following links:
- Home Buyer Tax Credit 2010 - Revised November 2009 (Extended and Expanded)
- Home Buyer Tax Credit 8000 - First Time Home Buyer (Extended), Expires April 30, 2010
- Home Buyer Tax Credit 6500 - Current Homeowners (Repeat Buyers), Expires April 30, 2010
- First Time Home Buyer Tax Credit Comparison Chart (2008 - 2010)
If you have any real estate questions, please contact me. Whether buying, selling, or just curious to learn more, I'm here to assist you. Please contact me with your questions. I look forward to hearing from you.
This post is provided for informational purposes only. If you have specific questions or individual concerns regarding the tax credit, please contact a tax professional or the Internal Revenue Service at 800-829-1040.