Everything you need to know about the $8,000 First-Time Homebuyer Tax Credit
IT EXPIRES SOON!!!
The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 prior to December 1st.
At a glance:
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Applies to purchases that CLOSE after 4/8/2008 and before 12/1/2009
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Applies only to homes used as a taxpayer's principal residence
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Reduces a taxpayer's tax bill or increases his/her refund, dollar for dollar
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Is fully refundable, meaning that the credit will be paid out to eligible taxpayer's, even if they own no tax or the credit is more than the tax owed
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Certain restrictions and eligibility requirements apply
First-time homebuyers represent a significant portion of existing single-family home sales. The expansion in the first-time homebuyer credit will make it easier for first-time homebuyers to enter the housing market this year.
For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.
The previous tax credit had a limit of $7,500 and had to be repaid. The new tax credit has a limit of $8,000 and does not... free money!
You do not have to repay the credit, provided the home remains your primary home for 36 months after the purchase date.
Visit: www.atlantafinestrealtor.com for more information.
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