$8000 tax credit first time home buyer

The $787 billion U.S. Stimulus Plan was signed by President Obama on Tuesday, 2/17/09.  The Homebuyer Tax Credit portion of the bill provides for an $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.  The credit does not require repayment.   Most of the mechanics of the credit will be the same as under the 2008 rules:  the credit will be claimed on a tax return to reduce the purchaser’s income tax liability.  If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

$8,000 tax credit at a glance:

• First-time home buyers only.
• Does not have to be repaid.
• Equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
• Available for homes purchased on or after January 1, 2009 and before December 1, 2009.

Below is a chart that highlights the major modifications to the first-time homebuyer tax credit:

For more information, the web site at federalhousingtaxcredit.com/2009/faq.php includes a detailed question and answer section about the tax credit. You can also visit the Realtor.com website for detailed information.

Source: The information in this report was provided by the National Association of REALTORS®  and the National Association of Home Builders but interpreted by Austin REALTOR® Brian Talley of Regent Property Group.  The information on this site does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information on this web site is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.  The information contained herein is subject to errors, omissions and changes without notice.  Any information, statistics, analytics, recommendations or opinions provided in this report are subject to errors and/or omissions and are not in any way guaranteed as accurate or reliable by Brian Talley or by Regent Property Group LLC.

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