I've been bombarded with calls from friends and from apartment renters who have had questions about the new $8,000 tax credit for first time home buyers.
The tax credit is only for homes that are purchased by first-time home buyers between January 1 to December 1, 2009 (11 Months Total).
Who Is Considered a First-Time Home Buyer?
First-time home buyers is anyone who has not owned a home in the last 3 years. Something to remember to couples that are getting married is if your future spouse has owned a home in the last 3 years, but you have NOT, then you DO NOT qualify for the $8,000 tax credit.
Also, if you own a vacation home or rental property within the last 3 years and it is NOT your primary residence, then you can be eligible for the $8,000 tax credit as long as you can prove it!
Is The Credit Consider a Loan?
If you purchased a home between April 9 and December 31, 2008 of last year, then they called it a "tax credit" because it really was an "interest-free" loan which is paid back ($500 every year) for the next 15 years, or upon the sale of the home (within 3 years of purchase).
The new rules applies on homes purchased between January 1 to December 31, 2009. You can get a tax credit up to $8,000 and it does NOT have to be repaid...UNLESS you sell the home within 3 years of the purchase date (the entire credit has to be paid back).
Income Limitations
The best advice I can give you is to speak with a certified tax accountant who can go over this with you.
Nick Good of the number 1 Keller Williams Office in Dallas/Ft. Worth specializes in helping first-time home buyers get into a home. Nick was a first-time home buyer in late 2007 and he has helped several first-time home buyers find that perfect home, so he knows all the feelings that first-time home buyers are feeling.
You contact Nick Good by clicking here or you can search for homes just like the Realtors do by clicking here
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