First-Time Home Buyer Tax Credit

In its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers.

But time is of the essence for buyers who want to take advantage of this opportunity.  Only homes purchased on or after January 1, 2009 and before December 1, 2009 are eligible.

$8,000 Home Buyer Tax Credit at a Glance

• The tax credit is for first-time home buyers only.  The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• Any home that will be used as a principal residence will qualify for the credit.
• The tax credit is equal to 10% of the home’s purchase price up to a maximum of $8,000.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

The information provided is for general guidance only.  You should consult a qualified professional advisor before making any decision or taking action on this information.

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