Surely, by now, you have heard about the $8,000 Federal Tax Credit for First-Time Homebuyers for 2009. It truly is an amazing time to be a first-time homebuyer! The government is practically paying you to buy a home!
Here are a couple of things that you need to know about the $8,000 Federal Tax Credit for First-Time Homebuyers, which may help you to make up your mind to become a homeowner!
- The tax credit is equal to 10% of the purchase price of the home up to $8,000, whichever is less.
- The amount of credit you receive is also influenced by your Adjusted Gross Income (AGI), whether you file individually or jointly - see charts below for the amounts
- Any single-family residence in the United States that will be used as your principal residence- in other words, you will live in this home the majority of the time - this includes single-family detached homes, condominiums, townhomes, co-ops, lofts, and any other new or existing dwelling
- The tax credit directly reduces the amount you owe when you file your taxes - for example, if you owe $2,000 for your 2009 taxes,you would receive a refund of the remainder of the credit, equally $6,000
- You do not have to repay the 2009 tax credit, however, you cannot sell your home within three years of the purchase date, otherwise the government will recapture the amount of the credit you received - in other words, they will take it back
- You must complete Form 5405 and submit it with your taxes in order to receive the credit and provide proper documentation - please consult your accountant or other tax professional before submitting for your tax credit
Are you a resident of Georgia? Then we have even more exciting news for you! From now until November 30, all homebuyers in Georgia - not just first-time homebuyers - are eligible for a state tax credit, too! For more information about the Georgia Homebuyer Tax Credit, please click here!
If you have any questions about buying your first home, please give The Gebhardt Group a call today! We would be happy to answer any questions that you have and help you achieve your tax credit!
Maura Neill, ABR, CRS, MA
The Gebhardt Group
RE/MAX Greater Atlanta
10220 Medlock Bridge Road
Johns Creek, GA 30097