The First Time Home Buyer Tax Credit has been increased to $8000! This credit is available to first-time home buyers only, those persons who have not owned a principal residence in during the three year period prior to purchase. All US citizens who file taxes are eligible to participate in the program.
This is a true credit in that it does not have to be paid back as long as the home owner owns the home for three years after purchasing. To qualify for the credit the home must close between January 1, 2009 and December 1, 2009.
There are income limits attached to the credit. Home buyers who file as single or head-of-household taxpayers can claim the full $8,000 credit if their modified adjusted gross income is less than $75,000. If their income is between $75,000 and $95,000 they will receive a partial tax credit. For married couples filing a joint return, the income limit doubles to $150,000. If their income is between $150,000 and $170,000 they will receive a partial tax credit. The credit is not available to single tax payers whose income is greater than $95,000 and married couples that exceed $170,000 in income.
A refundable credit means that if you pay less than $8,000 in federal income taxes, the government will write you a check for the difference. If you are due to receive a tax refund from the government, it will be added to the $8,000. Buyers can take the tax credit on their 2008 or 2009 income tax return.
All homes, whether single-family, townhomes, or condominiums and newly constructed homes will qualify, provided the home will be used as the principal residence.
Please contact the Dan Whitman Team for more information.