2009 First Time Home Buyer Credit of $8,000

The table below is a brief review of the New 2009 First-Time Homebuyer tax credit. To learn more about how the $8,000 First Time Homebuyer tax credit can benefit you in the purchase of your personal residence contact me or call 608-234-1523.

FIRST-TIME HOMEBUYER TAX CREDIT

EFFECTIVE FOR PURCHASES
JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009

Amount of Credit - Lesser of 10 percent of cost of home or $8000

Eligible Property - Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.

Refundable - Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.

Income Limit - Yes. 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 Homebuyer Only - Yes. Purchaser (and purchaser's 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 1, 2009 and before December 1, 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 1, 2009
Effective Date - January 1, 2009