Monday, June 22, 2009

American Recovery and Reinvestment Act of 2009 - How Does the $8,000 Tax Credit Work

  • The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000, whichever is less.
  • The tax credit is for first-time home buyers. Those who have not owned a property in 3 years are considered 1st time buyers.
  • The tax credit does not have to be repaid, provided the homeowner occupies the property as his/her primary residence for the first 3 years following the date of purchase.
  • The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
  • Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit*.
* Partial tax credits for those with incomes over the above limits may be available. Consult your tax advisor for details.

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