HOMEBUYERS TAX CREDIT

Program Overview

NEW IRS - First-time Homebuyer Tax Credit is a income tax credit up to $8,000 provided to qualified first-time homebuyers. This tax credit does not need to be repaid unless the is sold, transferred or ceases to be the principal residence in the 36 months after the closing. This is for a primary residence anywhere in the United States.

 

Who is eligible for this program?

Owner must purchase a primary residence between Jan. 1 and Dec. 1, 2009, make no more than $75,000 on a individual tax return or $150,000 for a joint return. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return) with phases out above those caps ($95,000 and $170,000, respectively).

Household Income Limit: $ 170000
Is this program for first time buyers only? No
 

Property Eligibility Requirements

Only the purchase of a single-family residence (including condos, co-ops) located in the United States qualifies and only for a limited time. Vacation homes and rental property are not eligible. You must close on the home between Jan. 1, 2009, and before Dec 1, 2009. For a home that you construct, the purchase date is the first date you occupy the home. Taxpayers who owned a main home at any time during the three years prior to the date of purchase are not eligible for the credit. This means that first-time homebuyers and those who have not owned a home in the three years prior to a purchase can qualify for the credit. Purchases by non-resident aliens are eligible for the tax credit

Benefit Details

Eligible taxpayers will claim the credit on new IRS Form 5405. This form, along with further instructions on claiming the first-time homebuyer credit, will be included in 2008 tax forms and instructions and be available later this year on IRS.gov, the IRS Web site. $8,000 or 10% of cost of home

For more information about this and other homebuyer programs please contact  CECILIA CARDOZO specialists in Affordable Housing.  Direct line (786) 290-7017