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First time home buyers: you may still have time to save
9/8/2009
Last February, President Barak Obama signed the American Recovery and Reinvestment Act of 2009 which includes a real benefit for first-time home buyers. The stimulus package includes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence before December 1, 2009. If you haven’t owned a home during the past three years, you can take advantage of this great deal. The catch? You must close on your home by November 30, 2009.
The good news is that many of the homes on the Parade of HomesSM tour are complete and ready to move in. Use the Move in Now Lifestyle Category search online or in the Guidebook to identify those homes easily.
Tax Credit Basics
Amount of Credit: Maximum credit amount $8,000
Termination: December 1, 2009.
Eligible Property: Any single-family residence (including condos, co-ops, townhouses) that will be used as a principal residence. All principal residences eligible.
Refundable: Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser. Purchasers will continue to receive refund for unused amount when tax return is filed.
Income Limit: Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).
First-time Homebuyer Only: Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.
Recapture: If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
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