First Time Homebuyers in Florence, AL - Get Your $8000 Tax Credit!

First-time homebuyers...are you ready?? With the signing of the economic stimulus legislation (officially known as the American Recovery and Reinvestment Act) by President Obama, if you are considering buying your first home in 2009, you have just received a nice bonus! Here is my understanding of the main things you need to know about the first time homebuyer tax credit:

1. Applies to homes purchased on or after Jan. 1, 2009 and before Dec. 1, 2009.

2. Credit amount = 10% of the purchase price or $8000, whichever is less.

3. Must be a first-time homebuyer (defined as not having owned a principal residence in the previous 3 yrs.)

4. Applies to any single family residence that will be used as a principal residence.

5. Full amount of credit available for individuals with modified adjusted gross income of no more than $75,000 or $150,000 if married and filing joint return. The credit will phase out at higher income levels.

6. There is no repayment required unless the home is sold within 3 yrs. of the purchase, then the entire amount must be repaid.

7. The credit reduces (or can eliminate) your income tax liability. Any unused amount will be refunded to you.

This is great news for first-time buyers who might be considering homes for sale in Florence, AL! I would be glad to help you find that home, but I am not a tax professional or a CPA...so if you have any questions on how this might affect your taxes, please contact your tax advisor!

Deidre Berry ~ Florence, AL Realtor
The search for Florence AL homes for sale starts HERE!