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Federal first time homebuyer tax credit

Since the Federal Stimulus bill was passed a lot of people have been asking about the new first time home buyer tax credit so here is a short synopsis:

For homes purchased in 2009 a first time home buyer will receive a tax credit up to $8000. (if the home was purchased in 2008 that credit is $7500)

There are certain criteria which have to be met in order for a first-time home buyer to qualify. The main criteria are:

1) The home must be your primary residence.
2) You have not owned a main home within the last 3 years.
3) You purchased the property after April 8, 2008 and before December 1, 2009.
4) Your adjusted gross income is less than $75,000 (if you file jointly the adjusted gross income cannot exceed $150,000). As your adjusted gross income exceeds $75,000 ($150,000 for joint filers) the amount of credit you receive decreases until it is phased out entirely at $95,000 ($170,000 for joint filers).

The 2009 credit differs from the 2008 credit in the fact that it DOES NOT need to be repaid under most circumstances. The 2008 credit has to be repaid over a 15 year period.

This information is for general purposes only. Please speak to your tax consultant to see if you are eligible for this tax credit.

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