New Tax Credit for First-Time Homebuyers

Posted by Stiles Mund Group on Wednesday, February 25th, 2009 at 1:08pm.

Could you or anyone you know use $8,000 FREE?

The 2009 First-Time Home Buyer Tax Credit was just passed into law in February 2009. This credit is available for first time home buyers only who purchase and close on a home in 2009.  A first time home buyer is someone who has not owned a principal residence during the three year period prior to the purchase. So, you could actually have owned a home in the past and still qualify. You also must be a U.S. citizen and file your taxes... AND you don’t have to pay it back! (unless you sell the house within 3 years after you purchase it….)

Of course there is a bit of fine print. If you are single or head-of-household you can claim the full $8,000 credit if your modified adjusted gross income (MAGI) is less than $75,000. If your income is between $75,000 and $95,000 you may be eligible for a partial first time home buyer tax credit.  Married couples filing a joint return can earn up to $150,000 a year and still qualify for the full credit but if your income is between $150,000 and $170,000 you are eligible to receive a partial credit. If you are a single tax payer and your MAGI is greater than $95,000 or a married couple with a MAGI exceeding $170,000 you are not eligible.

Now the sticky part  -

The credit is actually a refundable credit. So, if you owe $5,000 in federal income taxes then you would pay nothing and then would receive a check for $3,000 from the government. If you had a $1,000 refund coming then you would receive a check for $9,000 instead ($1,000 plus $8,000).  The tax credit can be taken on their 2008 or 2009 income tax returns. Could you actually get the tax credit in the mail before you close on your new home in 2009? Maybe! Talk with your accountant.

 If you or anyone you know (regardless of where they live - I have a worldwide network of agents) is looking to purchase a home (single family – new or old, townhome, or condominium), have not owned a principal residence in the past three years and want to take advantage of the $8,000 tax credit, contact me. Now is the time!

Want more information about the $8,000 tax credit? Contact me or go to www.federalhousingtaxcredit.com

 

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