Hey, first-time homebuyer: How does $8,000 from your Uncle Sam sound?

Real Estate Sales Representative with Keller Williams

With the new legislation that is being implemented to encourage home sales and stimulate the economy, home buyers have new questions and new opportunities. Feel free to copy and paste the following explanation from financing expert David Reed into your blog, your newsletter and other client communications.

Hey, first-time homebuyer: How does $8,000 from your Uncle Sam sound?

Want an extra $8,000?  If you're a first-time homebuyer then we have a nice surprise for you. 

Last fall, the Federal Government introduced a financial incentive to prospective first-time homebuyers - an income tax credit of up to $7,500. The rules were simple: you must have been a first-time homebuyer (as defined by not owning a home in the previous three years) and you met certain income restrictions.

The new $8,000 tax credit is available to those who buy between January 1, 2009 and December 1, 2009. It's not a deduction, it's an actual credit.  Unlike the $7,500 first-time homebuyer tax credit introduced last summer; this does not need to be repaid.

First timers who qualify can make no more than $75,000 in adjusted gross income if they're single or $150,000 if filing jointly. The maximum tax credit is $8,000 or 10 percent of the sales price of the home, whichever is less. Three years residence in the property are required. As always, check with your accountant for details and be sure to submit IRS form 5405 when you file your taxes.

Comments (3)

Linda Greco Rich, ABR, SRES
Exit Preferred Realty - Bel Air, MD
Harford County Specialist

Hi Jeff,

I hope buyers read your information on Localism and put it to good use by calling you right away.

Mar 16, 2009 12:22 AM
Wayne Golliday
Mobile Home Sales of Florida LLC - Jacksonville, FL

I has not heard this.  I wonder how well this will work in helping the real estate market.Too bad they did not go higher. I would think a $25000 dollar tax credit would have lit the market on fire. That was the number I heard being tossed around last fall

Mar 16, 2009 02:13 AM
Rosemary Dunstan
LaRocca - Los Angeles, CA

Jeff, Very good news for new homebuyers...thanks for the info...I may be able to take advantage of that offer from Uncle Sam.  On that note, we had Pres. Obama out here today in Los Angeles.  Perhaps he'll bring some good Change-vibes with him re: the market.  Kidding aside, the sales have actually been on a roll here.  Best wishes to you with sales out there in Greenville!  Rosemary

Mar 19, 2009 10:44 AM