$8,000 First Time Home Buyer Tax Credit

$8,000 First Time Buyer Tax Credit

If you are thinking about purchasing a home, don't wait. Now is a great time, especially if you are a first-time home buyer. Part of the economic recovery plan includes a dollar-for-dollar tax credit of up to $8,000 if you purchase a home January 1, 2009 to December 31, 2009. This is a CREDIT, not a deduction. That means that the amount of taxes you would owe the IRS for year 2009 are decreased by that amount. Below are some of the basic highlights of the tax credit and here is a link to the IRS web page with detailed information. http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Please always see your tax professional for advice.

• The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

NOTE: I am not a tax professional, this information is provided as general information and not intended to take the place of advice from you tax professional or account.