Information for First Time Home Buyers
What: A tax credit equal to 10% of the purchase price of a home up to $7500 for joint income filers and $3750 for separate returns
Dates: if you settled after April 9, 2008 and before July 1, 2009 you can qualify
Who: A first time home buyer is someone who never owned a principal residence in the 3 year period ending on the date of purchase
There are some limitations/exceptions:
Taxpayers who claimed DC First Time Homebuyer Tax Credit
Non-resident Aliens
Homeowners who sell the house within the year of purchase
For married couples, both must qualify
$75,000 income limitation for a single individual
$150,000 for married taxpayers
The Recapture/Payback of the Credit
Is repaid 6 2/3% over 15 years or $500/year
Payback starts in the second tax year after purchase (2 years after purchase)
Recapture is accelerated and must be paid back in full in the year the property is sold or no longer the homeowner's principal residence
The credit is part of the Housing and Economic Recovery Act of 2008.
For more information, please check out the website:
http://www.federalhousingtaxcredit.com/
There is a good Q & A section
Please contact me with any questions.
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