First-time home buyers may be eligible for a tax break up to $8,000 through the American Recovery and Reinvestment Act of 2009. This special tax break expires December 1,2009.
Important Facts You Need To Know:
It is for first time home buyers, defined as someone who has not had an ownership interest in a principle residence in the 3 year period prior to the date of the 2009 purchase.
The buyer must remain in the home for a minimum of 3 years.
It is applicable to purchases between January 1, 2009 and December 1, 2009.
Full credit is available to those with adjusted gross income of $75,000 or less ($150,000 for married filing jointly). The credit is phased out entirely for those with adjusted gross income over $95,000 ($170,000 for married filing jointly).
The tax credit can be used towards the down payment and closing costs on an FHA mortgage.
Tax Economist Answers Questions About the Home Buyer Credit:
Rob Dietz, Ph.D., director of tax issues for the National Association of Home Builders, discusses the $8,000 first-time home buyer tax credit in this videotaped interview.
Federal Housing Tax Credit WebsiteUsing Tax Credit As Down Payment
Contact me for help buying your first home and utilizing your $8000 tax credit!