$8000 Tax Credit for First Time Home Buyers!

Great news for First-Time Home Buyers!

First Time Home Buyers can receive a tax credit of up to $8,000 for buying their first home. The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers who purchase a home after December 31, 2008 and before December 1, 2009.

With home prices lower than they have been in a long time, this is a great opportunity to become a new homeowner!

What you want you to know:

•Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. The tax credit can be claimed on 2008 income tax forms even though the purchase took place in 2009. A buyer could close on a home the same day that the President signs it into law, fill out their income tax forms the next day, and receive the tax credit fairly quickly.

•To qualify as a first-time homebuyer, the purchaser cannot have owned a home within the previous three-year period. However, ownership of a vacation home or rental home does not disqualify the buyer.

•The tax credit is a straight dollar-for-dollar reduction of your tax bill


•For first-time home buyers purchasing a home, the credit is worth 10 percent of a home’s value up to $8,000, which means all homes worth more than $80,000 could qualify for the maximum amount.

•The credit begins to phase out for taxpayers with adjusted gross income in excess of the limits. The income limit to qualify: A married couples’ modified adjusted gross income (MAGI) should be under $150,000 and single filers’ MAGI should be less than $75,000. Partial tax credits may be available for married couples with MAGI incomes over $150,000 but under $170,000, and single filers with incomes over $75,000but under $95,000. If married couples file separately, they can both claim 5% of the home purchase ($4,000 each for a home over $80,000) on their tax returns.

•It’s a tax credit, not a deduction. That means the entire amount goes back to the first-time homebuyer unlike deductions, such as mortgage interest, that are subtracted from gross income before tax is calculated. If qualified for $8,000, the buyer gets $8,000, even if they would not owe that much in taxes otherwise

•Within the first three years of the purchase date, if you either sell the home or it ceases to be your primary residence, the tax credit must be repaid to the Internal Revenue Service.

Also see http://www.federalhousingtaxcredit.com/
JoAnn Papsidero - 321-243-4917 email JoAnn@myFLdreamhome.com