First Time Home Buyer Tax Credit of up to $8,000

The Worker, Homeownership and Business Assistance Act of 2009 has extended the First Time Home Buyer Tax Credit of up to $8,000 to qualified first time home buyers.

The tax credit now applies to sales occurring on or after January 1, 2009 and/or before April 30, 2010. Homes under contract by April 30, 2010 will qualify for the tax credit if closed by June 30, 2010.

The First Time Home Buyer Tax Credit is equal to10% of the purchase price up to $8,000.

To qualify for the Tax Credit a First Time Home Buyer is someone who has not owned a primary residence during the three years period prior to the purchase. For married couples, the law tests the ownership history for both the home buyer and the spouse. For sales occurring after November 6, 2009 the income limits for single taxpayers is $125,000 and for married tax payers filing joint returns $225,000. The tax credit amount is modified for taxpayers exceeding those income limits.

The purchase price for the home has to be equal to or less than $800,000.

To learn more about the advantages of the first time home buyer tax credit give us a call at 727.247.6355 and we'll be glad answer any questions that you may have concerning the tax credit.

Always seek the advice of a qualified tax advisor on this or any other tax related matters.