$8,000 TRUE Tax Credit for First Time Home Buyers!

FIRST-TIME HOMEBUYER TAX CREDIT

As Modified in the American Recovery and Reinvestment Act
February 2009

EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009

Amount of Credit
Maximum credit amount increased to $8000

Eligible Property
Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.
All principal residences eligible.

Refundable
Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.

Income Limit
Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).

First-time Homebuyer Only
Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.
No credit allowed if home financed with state/local bond funding.
No repayment for purchases on or after January 1, 2009 and before December 1, 2009

Recapture
If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.

Termination
December 1, 2009

Effective Date
January 1, 2009