Home Buyer Tax Credit being signed into Law Today!
First Time Home Buyer Tax Credit - American Recovery and Reinvestment Act
The Home Buyer Tax Credit that was passed by the House and Senate last week and that will be signed into law today by President Obama provides for a potential $8000 tax credit that would be available to first-time home buyers for the purchase of a principal residence purchased on or after January 1st 2009 and before December 1st 2009. The biggest win for first time home buyers is this doesn't have to be repaid, there is no repayment as long as you don't sell the home within the three years of purchase. Three year rule applies for qualifying as a first time home buyer, if you haven't owned a home in the last three years you would qualify for this tax credit. This Tax credit is for a limited duration, from today through the 1st of December of this year.
Features of the Tax Credit
- Amount of Credit Lesser of 10% of cost of home up to the maximum of $8,000
- Eligible Property Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.
- Refundable Purchasers will continue to receive refund for unused amount when tax return is filed.
- Income Limit Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return), phases out above those caps ($95,000 and $170,000).
- First Time Home Buyer Only Purchasers and purchasers spouse may not have owned a principal residence in 3 years previous to purchase.
- Revenue Bond Financing Purchasers who utilize revenue bond financing can use credit.
- Repayment No repayment for purchases on or after January 1st 2009 and before December 1st 2009
- Recapture If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
- Termination December 1st 2009
- Effective Date January 1st 2009
This tax credit coupled with historically low interest rates and attractive prices will certainly make 2009 a great year to be a FIRST TIME HOME BUYER. I will be updating everybody on the FHA Loan limits in the coming days, the same bill President Obama will be signing tomorrow also reinstates the 2008 higher loan limits we fought so hard to get last year.
For questions please email me bob@reidrealtyteam.com or phone 360.606.1295