There is a great
opportunity for anyone who hasn't owne a home in the past 3 years.
This is a true
tax credit and doesn’t have to be repaid unless you don’t live
in the house for first of three years, or sell in the first three years.
The credit is also extended until December 1, 2009 . It looks like the
qualifying income limits will be the same. The tax Credit is retroactive
to purchases made on or after January 1, 2009.
Did you know that you may be eligible for the First-Time Home Buyer Tax
Credit that is part of the Housing and Economic Recovery Act of 2008.
This tax credit is designed to encourage first-time home buyers to purchase
their first homes. Combine this tax credit with the fact that home prices
are relatively lows and interest rates are at historical lows, it may
be an ideal time for many first-time home buyers to purchase homes. How
the law works....
1. The tax credit is available
for homes purchased from now through December 1, 2009
2. The tax credit amount is
10% of the price of the home not to exceed $8,000
3. A first time home buyer
is defined as anyone who hasn't owned a home for the past three years
4. To qualify for the full
tax credit single tax payers can have incomes of up to $75,000 and married
couples up to $150,000. Single tax payers with incomes between $75,001
and $94,999 or $150,001 and $169,999 (joint returns) are eligible for
a partial tax credit. Single tax payers with incomes greater than $95,000
or $170,000 (joint return) are not eligible for this tax credit.
This is a tax credit and not
just a tax deduction. A tax credit is an actual dollar for dollar reduction
in your tax bill. That means that the credit is subtracted from the amount
of income tax that you owe to the IRS
