2009 First-Time Home Buyer Tax Credit
1st TIME HOME BUYERS DON’T MISS OUT. You have a limited time to take advantage of the 2009 1st time home buyer tax credit of up to $8,000.
In Feb’09, Congress passed legislation that truly helps out 1st time home buyers. Since the 2008 Stimulus package was passed last summer giving 1st time home buyers a $7,500 tax credit, the National Association of Realtors (NAR) had been pushing for an upgrade. You see, the 2008 tax credit presented 1st time home buyers with a $7,500 tax credit that needed to be paid back over a 15 year period. NAR was seeking for a change to the 2008 tax credit and was hoping it would be increased to $15,000 and not have to be paid back. When all was said and done with the 2009 Stimulus package, we ended up with an $8,000 tax credit that does not have to be paid back. For example, if the 1st time home buyer qualified for the full $8,000 tax credit and say they owed the IRS on their 2009 taxes $2,000. They would not owe anything to the IRS and the IRS would write them a check back for $6,000. This is GREAT NEWS and a good start to hopefully help the housing market back on track.
Of course there are a few stipulations/requirements to the credit, but basically, if a 1st time home buyer closes on a home on or after January 1, 2009 and before December 1, 2009, they could qualify for the $8,000 tax credit on their 2009 taxes or even possibly on their 2008 tax returns. The 1st time home buyer should check with their tax adviser to be sure. Now keep in mind that the law defines a ”first time home buyer” as a buyer who has not owned a principal residence during the 3 year period prior to purchasing a home.
The amount of the tax credit is 10% of the purchase price. So a property of $80,000 or more would qualify the 1st time home buyer to take full advantage of the $8,000 tax credit. If the property was purchased for $60,000, then you would qualify for a $6,000 tax credit. The first time home buyer would only have a repayment requirement if the home was sold within 3 years from the date of purchase. There are income requirements for the 1st time home buyer to qualify. CLICK HERE for much more complete information formulated and presented by the National Association of Home Builders (NAHB) on the 2009 tax credit.
