A new tax credit is available for first time homebuyers under the American Recovery and Reinvestment Act of 2009. If you close on a home between January 1st 2009 and November 30, 2009, you may be eligible to receive a tax credit for 10% of the purchase price of your home up to $8000.00.
Here are the highlights of the program:
1. Homebuyer must not have owned a primary residence for the past three years. This does not mean you can not have owned investment properties.
2. To get full credit homebuyer if single can not make more than $75,000/year, and if married $150,000/year. This will be determined from your tax return.
3. To get a partial credit homebuyer if single can not make more than $95,000/year or $170,000/year if married.
4. This applies to the purchase of single family homes, including condos, co-ops, townhomes, ect. that will be used as a primary residence.
5. Homebuyer can reduce (or even eliminate) their income tax liability for the year of purchase by claiming the credit on their tax return. You can even receive a refund if you do not have a tax liabliity.
6. If the homebuyer sells the property before 3 years the first time homebuyer who is now the seller will be responsible for paying back the tax liability.
This is a great incentive for anyone considering buying their first home. If you are interested in finding out if you qualify, please email Kemp Nash @ kemp.nash@century21.com and I will put you in touch with a mortgage broker that can assist you.
To ensure compliance with requirements imposed by the IRS, I inform you that any U.S. federal tax advice contained in this document is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter that is contained in this document. Consult your tax advisor for further details.
Wednesday, March 4, 2009
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