Free Mone From the Feds!
The following information is a summary of the new First Time Home Buyer Tax Credit
Effective for Purchase on or After 1/01/09 & 12/01/09
Amount of Credit - Less of 10% of cost of home or $8000
Eligible Property - Any single family residence (includes condos, co-ops, townhouses) that will be used as principal residence.
Refundable - Yes, Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit is refunded to purchaser. 2009 purchases can be claimed on 2008 returns for immediate refunds.
Income Limit - Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000/joint return). Phases out above those caps ($95,000 and $170,000)
First-Time Home Buyer Only - Yes, as well as any purchaser (and purchaser's spouse) who have not owned a principal residence in 3 years previous to purchase.
Recapture - If home is sold within 3 years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
Termination - December 1, 2009 - close by then or the money is gone!
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