New Federal Tax Credit provides opportunity for First-Time Homebuyers.

There is good news for first-time homebuyers. The new tax credit may mean new buying opportunities for qualfied homebuyers.

Effective January 1, 2009, qualified first-time homebuyers may be eligible for a federal tax credit of up to $8,000.  Ask your tax advisor for more details.  Listed below are some of the key highlights of the program:

• First-Time Homebuyers Only: must not have owned a principal residence during the 3 year period prior to purchase
• Amount of Tax Credit: credit equals 10 percent of the homes purchase price, up to a maximum of $8,000, whichever is less
• No Repayment: This tax credit does not require repayment but home buyers must use residence as a principal residence for at least 3 years or face recapture of tax credit amount.
• Tax Credit is Refundable:  Homebuyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset.  A refund check may be issued to the taxpayer for a portion or even all of the refundable tax credit (depending on the taxpayer's tax liability)
• Income Restrictions: single taxpayers with income up to $75,000 and married couples with incomes up to $150,000 qualify for the tax credit. (partial tax credits may be available for taxpayers incomes over the above limits*restricitons apply-must consult your tax advisor)
• 2008 Tax Returns: tax credit can be claimed on 2008 federal tax returns if the home was purchased on or after January 1, 2009.
• Limited Time Only: tax credit is availble for homes purchased on or after January 1, 2009 and before December 1, 2009

Contact me today to find out how the new ferdal tax credit meight help you move into a New Construction Home!