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Window into 2009 Homebuyer Tax Credit

 President Obama signed a law called the American Recovery and Reinvestment Act of 2009 in February.  This law will grant a tax credit of $8,000 to qualified 1st time home buyers purchasing a home during 2009.  The purpose of this post is to outline some guidelines for you so you know whether or not you qualify for this credit.  Some do and some don’t.

12 Facts About the 2009 First Time Homebuyer Tax Credit

1.  To qualify for the 2009 1st time home buyer tax credit, the home must be purchased between January 1 and December 1, 2009.

2.  The home must be purchased for no less than $80,000 to acquire the $8,000 tax credit.

3.  A 1st time home buyer, in this situation, will not have owned a principal residence in the 3 years prior to purchase.

4.  The income limit for claiming the full tax credit for married taxpayers filing a joing return is $150,000.

5.  The income limit for claiming the full tax credit for single taxpayer is half that – $75,000.

6.  The home buyers income tax credit will be determined by the AGI – Adjusted Gross Income.

7.  The repayment feature is eliminated in the 2009 tax credit.  This is the most significant difference to the 2008 tax credit.

8.  The tax credit applies only to your primary home.

9.  You will need to claim your tax credit on your federal income tax return.

10.  Vacation homes and rental properties are not eligible for the 2009 1st time home buyer tax credit.

11.  If buyers are eligible for the entire $8,000 but their entire income tax liability is less, they’ll get a refund for the difference.

12.  Owners must stay in their homes for 3 years (36 months) for no repayment of this tax credit to be required.

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If you would like to talk to a professional Realtor anywhere in the United States, please feel free to contact me, ReloMary, and I will find you someone qualified to give you good, reliable information.  I invite all inquiries.

Mary Lascelles (aka ReloMary)
relomary@movinglinks4you.com
530.515.6299

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