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Home Buyers $8,000 Tax Credit

Attorney Darren Welsh has an informative post on his legal blog regarding the first time home buyers credit of $8,000 which was modified as part of the recently passed legislation "American Recovery and Reinvestment Act of 2009".  Las Vegas accountant, Diane Clough explains the tax credit... read more..... TGIF Legal Tip: First Time Buyer $8,000 Tax Credit 

In a nutshell:

  • Changes the 2008 $7500, repayable credit to $8000 and no repayment (tax credit - “refundable”)
  • Good for purchases of principal residence on or after January 1 to December 1, 2009
  • Only first-time home buyers are eligible (defined as anyone who has not had any home ownership in 3 years prior to day of 2009 purchase)
  • Income restriction - individuals earning up to $75,000 and married couples who file joint return no more than $150,000
  • There is a reduced credit which totally phases out for individuals at $95,000 annual income and $170,000 (joint return)

Here's more on the home buyer tax credit from NAR:

Homebuyer Tax Credit – The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.  The credit does not require repayment.  Most of the mechanics of the credit will be the same as under the 2008 rules:  the credit will be claimed on a tax return to reduce the purchaser's income tax liability.  If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

Download HomeBuyers_Tax_Credit - NAR Presentation

Download HomeBuyer_tax_cred_qa - FAQ from NAR