$8,000 Home Buyer Tax Credit Details
The recently approved
American Recovery and Reinvestment Act of 2009, coupled with the lowest resale prices in years, offers a wonderful opportunity to purchase home.
The American Recovery and Reinvestment Act of 2009 includes
An $8,000 tax credit - up from $7,500 - for first-time home buyers for the purchase of a principal residence on or after January 1 and before December 1.
The credit applies only to homes purchased during 2009.
The credit does not have to be repaid if you do not resell within three years.
The credit will be used as a tax deduction to reduce the buyer's income tax liability. A refund check will be issued to the buyer for any unused credit.
Purchaser and purchaser's spouse may not have owned a principal residence within the three years prior to purchase.
The full amount of the credit is available to individuals with a gross adjusted income of no more than $75,000 or $150,000 if a joint return is filed. The credit phases out above those caps ($95,000 and $170,000).
Eligible properties include any single-family residence - including condominiums, co-ops or townhouses - that will be used as a principal residence.
While most of the provisions are similar to the measure approved in 2008, there are some differences, such as: purchasers who utilize revenue bond financing now can use the credit.
A provision of the bill also provides $2 billion in additional funding for the Neighborhood Stabilization Program. The NSP was created by the Housing and Economic Recovery Act of 2008 to offer grants through the Community Development Block Grant program to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties.
For more information on the Recovery Act, contact your Realtor or go on-line to www.housingmarketfacts.com.