The American Recovery and Reinvestment Act of 2009 contains a provision to assist/encourage first-time home buyers with a home buyer tax credit of $8,000. Below is a brief synopsis of the program:
Amount of the Credit
Lesser of 10% of the cost of the home or $8,000
Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence
Reduces income tax liability for the year of purchase. Any unused amount of the tax credit is refunded to the purchaser.
Individuals with an adjusted gross income of less than $75,000 ($150,000 for a joint return) can receive the full tax credit amount. The program phases out completely abouve $95,000 per individual and $170,000 for a joint return.
Who is a first-time buyer?
Any purchaser who has not owned a principal residence in the past three years.
This credit contains a recapture clause that will require that the entire credit is repaid if the home is sold within three years after purchase.
For purchases between January 1, 2009 and September 1, 2009
So, if you are a first time home buyer, hurry!
Keller Williams Realty