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.
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.