First Time Home Buyers Tax Credit                                    

The tax credit is for the first-time home buyers only.  The laws defines a "first-time home buyer" as a buyer who has not owned a principle residence three years prior to the purchase of   a home.  If  married taxpayers are buying a home the law  looks at the homeownership history of both the home buyer and his or her spouse.

The tax credit does not have to be  repaid .  The tax credit is a total reduction in the amount of taxes you owe. Remember, the home buyer must use the home as their primary residence for at least three years, or will face the recapture of the tax credit amount.

A home purchase must occur on or after January 1, 2009 and before December 1, 2009

The purchase date is the date when closing occurs and the title of the property transfers to the home owner.  The types of residences that qualify for this credit are: single family detached homes, attached homes, townhouses, condominiums, manufactured homes (mobile homes) and houseboats and the property can be new or  a resale.

The maximum credit allowed is $8000.   The tax credit  is equal to 10 percent of the purchase price of the home up to a maximum of $8000.   You  can claim the tax credit on your federal income tax return for 2009.    Please read IRS form 5405 for instructions and qualifications.

Income  Qualifications.  Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. Please read the IRS  instructions  regarding the  income qualifications or check with your tax advisor , there is a reduced tax credit for those exceeding the income limits.  However, there is a ceiling.

For many of you, your lease purchase is your first home.   If you are  scheduled to close  before December 1, 2009 you will be eligible for the tax credit.  If you are scheduled to close after December 1, 2009, give serious consideration to closing before this date, as this is a substantial tax credit  that does not have to be repaid.

For further information and FAQ  go to: www.federalhousingtaxcredit.com

 This information does not constitute legal, tax or accounting advise.  It is general information only.

All information believed to be accurate but not warranted

America's Network Realty Group, Inc  Atlanta, Ga 30338  Office: 770-551-5850 Email:sjackson@kstrealty.com    Visit our website: www.kstrealty.com