First Time Buyers - Tax Credit

This post is important enough to re-post. First Time Buyers, Take Advantage if You Can!!

Earlier this year, Congress passed a Bigger and Better Home Buyer Tax Credit. In an effort to stimulate the economy and revive the current housing market, this temporary tax credit is a welcome one to many. According to the Internal Revenue Service, first-time home buyers should begin planning now to take advantage of this new Tax Credit.

A Tax Credit of up to $8,000 is now available for qualified first-time home buyers. Available for a limited time, here’s your glance at the credit:

• Who is Eligible? The credit is available to first-time home buyers only. A first-time home buyer is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married home buyers, the history of both buyers is taken into account.
• Is There a Deadline? Yes. The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Is There an Income Requirement? Yes. Single taxpayers with incomes up to $75,000 and people filing joint returns with incomes up to $150,000 qualify for the full tax credit.
• What is the Tax Credit? The tax credit works like an interest-free loan and must be repaid over a 15-year period.
• Does the Price of the Home Matter? Yes it does. The credit is for 10 percent of the cost of the home, up to a maximum credit of $8,000.
• How is this Tax Credit Different than the $7,500 Tax Credit Passed in 2008? The most significant difference is that this tax credit doesn’t have to be repaid. This incentive to home buyers is a true “tax credit”. If however the home buyer doesn’t use the residence as a principal residence for at least three years, the credit may be recaptured by the government.

There are numerous resources available for additional, detailed information about the tax credit. click on either of these sites below that I found to have the most in-depth information:

• National Realtor Association Info on the Tax Credit
• Tax Information for U.S. Armed Forces

Bob
608-235-6701

bob@bentleyrealtygroup.net
www.bentleyrealtygroup.net

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