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Things to Know about the NEW $8,000 Tax Credit

By
Real Estate Agent with EZ Home Search Real Estate

Things to know about the NEW 2009 First-Time Homebuyer Tax Credit!

  • The $8,000 (or 10% of the purchase price, whichever is less) Tax Credit is just that, a credit, not a loan. You get your money when you file your FY 2009 tax return. There is a recapture if you sell your home within 36 months.
  • You must have purchased your home between January 1, 2009 to December 1, 2009. Single family homes, condos, townhouses, and co-ops qualify so long as they are used as the taxpayer's principal residence. Home purchased in 2008 do not qualify. Also homes sold between family members do not qualify.
  • Only First-Time Buyers Qualify...a first time buyer is someone who has not owned a principle residence in the last 3 years.
  • There are income limits to qualify. The modified adjusted gross income limit for singles is $75,000 and for married couples in $150,000. The IRS determines what your MAGI is. Check with your accountant.
  • There are no clear guidelines for how the IRS will look at how this will affect buyers of multi-family homes. Check with your accountant or tax professional to determine if you qualify.

For more information about this tax credit you can visit: http://www.federalhousingtaxcredit.com/