First-Time Homebuyer's Tax Credit

I have been asked by many on how part of the American Recovery and Reinvestment Act pertains to the first-time homebuyers and their eligibility for a refundable tax credit. Here is a quick overview of the $8,000 tax credit for first-time homebuyers:

• A "first-time homebuyer" is defined as a person who had not owned a home in the last 3 years
• The tax credit is equal to 10% of the home's purchase price up to $8,000.
• The credit is only available to the homes purchased on or after January 1 and before December 1, 2009
• The homes must be a single family dwelling including: new, existing, condo, or townhomes
• The tax credit does not have to be repaid if the home isn't sold within 3 years of the purchase date
• The tax credit is "refundable" or claimable for the year of purchase regardless of the homebuyer's tax liability.
• Income requirements: Single taxpayers up to $75,000 and married couples up to $150,000 qualify

FAQ's for the First-Time Homebuyer Tax Credit

Please consult your tax advisor for more information.

Kristen Wehner Jacobsen, CRS, CREN

402-672-7701

Omaha, NE