Summary of the $8,000 Federal Tax Credit
Elizabeth Martin with Edward Surovell Realtors in Ann Arbor, Michigan wrote a very well-written summary blog post of the $8,000 tax credit. Elizabeth is a fellow blogger on Active Rain and I appreciate her allowing me to re-blog her article here.
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The American Recovery and Reinvestment Act was signed into law February 17, 2009
So what's in it for you?
$8,000 Federal Tax Credit for First Time Homebuyers
- You are eligible for the tax credit if you purchase your first home before December 1, 2009.*
- The tax credit is $8,000 or 10% of the purchase price, whichever is less.
- The money from the credit will not help you with closing costs or a downpayment as you will receive this tax credit when you file your 2008 or 2009 taxes.
- You do not have to repay the $8,000 like the previous $7,500 tax credit included in the Housing and Economic Recovery Act of 2008 as long as you do not sell your home within three years of purchase. The credit will be reversed if you do so.
- The tax credit is only for individuals with an adjusted gross income of under $75,000 or for joint filers with an adjusted gross income of under $150,000.
*You are also eligible if you have not owned a home during the three years prior to the date of purchase.
Here is a chart comparing the first-time homeowner tax credits from 2008 and from 2009.
You can track the status of The American Recovery and Reinstatment Act at www.recovery.gov
Legislation to Help Current Homeowners
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