Our brokerage, Kline May Realty, created a short list of FAQ's regarding the new First Time Home Buyer Tax Credit. We are passing these out to home buyers to educate them on this exciting new credit.
If I have owned a home in the past, but don't own one now, can I be considered a first time home buyer?
Yes, in some cases. If you have not owned your primary residence in the past three years, you will qualify for the credit as a first time home buyer.
What is the maximum credit I am eligible to receive?
The lesser of $8,000 or 10% of the sales price of the home.
What types of properties are eligible?
All types, including townhomes and condominiums, as long as the home is your primary residence.
How do I get the credit if I am eligible?
When you file your 2009 tax return, the credit will reduce your tax liability for the year, which will either reduce the amount you owe, or generate a refund check from the government.
If my tax liability for 2009 is less than $8,000, what happens to the rest of the credit?
If your tax liability for the year is less than $8,000, you will receive the difference in the form of a check!
Is this a loan?
No. You do not have to pay the $8,000 back unless you sell the home within three years of the purchase date.
When does the program end?
December 1, 2009.
If you have any questions regarding this tax credit, or about any part of purchasing a home, give The Harrisonburg Homes Team a call at 540-421-3179!