Did You Know?

It's a Great Time for Buyers!
$8000 Home Tax Credit!

First-time home buyers who purchase a home this year can now take advantage of the stimulus bill's $8,000 tax credit.

"For first-time home buyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman, in a news release. "This important change gives qualifying home buyers cash they do not have to pay back."

First-Time Home Buyer Tax Credit:
Here are some things you need to know about the $8,000 first-time buyers tax credit.

1. What's the Credit: The tax credit included in the economic stimulus legislation is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.

2. Am I a First time Buyers: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.

3. How Long Is Good For: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it. 2009 ONLY

4. Are there Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

5. What if I Don't Owe Any Tax: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.

6. What's the Catch: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

If you find the right house at the right price, Buy It!

First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return.

The credit is claimed using this IRS form: Form 5405.
Download the brochure for more information: $8000 Tax Credit Brochure.

* Reported by National Association of Realtors and Metropolitan Regional Information Systems

When buying your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace including price, financing and terms of competing properties. These are key factors in a successful purchase. 

Best of all it's FREE for Buyers to be represented in the transaction.
 

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