Life in Newtown, CT: First Time Homebuyer Tax Credit

First Time Homebuyer Tax Credit

First Time Homebuyer Tax Credit  First time homebuyers can claim a tax credit worth $8,000 as part of the Economic Stimulus Package. The credit is effective as of January 1, 2009 and will expire December 1, 2009.

First Time Homebuyer Tax Credit

Amount of Credit:  Ten percent of the value of home or $8,000, whichever is less.  If you purchase a home for more than $80,000, you qualify for the full $8,000 tax credit.

Eligible Property:  Any owner occupied, single-family residence (including condos, co-ops and townhouses) that will be used as a principal residence.  If you have not owned a home in 3 years or more, you should qualify for this credit.


Refundable:  No "repayment" required, unless home is sold within the first three years.

Definition of First Time Homebuyer:  A buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

Income Limit:  Full credit is available for individuals with modified adjusted gross income of no more than $75,000 ($150,000 on a joint return). Partial credit is available up to $95,000 for individuals ($170,000 on a joint return).

Termination:  December 1, 2009

If you have any questions, please feel free to email us.

Bob and Richelle Ward, Realtors, Newtown, CT

Bob and Richelle Ward - The Ward Team
Coldwell Banker Residential Brokerage
Bob's Cell: 203 470-9818  l  Richelle's Cell: 203 470-9819
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Comment balloon 0 commentsThe Ward Team • March 26 2009 05:38PM