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08.04.2009 / Home Buyer Tax Credit At A Glance . . .

With the advent of the Home Buyers Tax Credit, now may be the perfect time to buy your first home! The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to 8,000 dollars for qualified first-time home buyers who are buying a principal residence from January 1, 2009 to December 1, 2009.

"Now may be the perfect time to buy your first home!"
  • The tax credit is for first-time home buyers only.
  • 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.
  • Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

Who is eligible?

First-time home buyers purchasing any kind of home - new or resale - are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.

What is the definition of a first-time home buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence for three-years prior to the purchase. For married taxpayers, the law looks at the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit.

How is the amount of the tax credit determined?

The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.

For more information on the tax credit visit federalhousingtaxcredit.com or call a First National Bank Mortgage Specialist at 402-602-5300 or 888-568-2200 or visit them online at firstnationalmc.com.

* Information on this web site is provided by NAHB (National Association of Home Builders) for general guidance only. The information on this site does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such.

Posted at 01:48 PM | Permalink

Comments

Does anybody know if this credit could be used by a dependent? My college student son might be buying a house. His has income and pays taxes but will probably still be our dependant this year.
Posted by College Parent at 09:02 AM, Aug 03, 2009
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