The Basics: 2009 First-Time Home
Buyer Tax Credit
Bringing the Dream of
Homeownership Within Reach
As part of its plan to stimulate the U.S. housing market
and address the economic challenges facing our nation,
Congress has passed legislation that grants a tax credit
of up to $8,000 to first-time home buyers.
Here is more information about how the 2009 First-Time
Home Buyer Tax Credit can help prospective home buyers
become part of the American dream.
Who Qualifies?
First-time home buyers who purchase homes between
January 1, 2009 and December 1, 2009.
To qualify as a “first-time home buyer” the purchaser or
his/her spouse may not have owned a residence during the
three years prior to the purchase.
Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied
to primary residences, including: single-family homes,
condos, townhomes, and co-ops.
How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000.
Each home buyer’s tax credit is determined by two
factors:
The price of the home—the credit is equal to 10% of the
purchase price of the home, up to $8,000.
The buyer's income—single buyers with incomes up to
$75,000 and married couples with incomes up to
$150,000—may receive the maximum tax credit.
If the Buyer(s)’ Income Exceeds These Limits, Can
He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $75,000
and $95,000 for single buyers and between $150,000 and
$170,000 for home buyers filing jointly. The amount of
the tax credit decreases as his/her income approaches
the maximum limit. Home buyers earning more than the
maximum qualifying income—over $95,000 for singles and
over $170,000 for couples are not eligible for the
credit.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if
he/she occupies the home for three years or more.
However, if the property is sold during the three-year
period, the credit will be recouped on the sale.
For more information on how I can
help you take advantage of this one time
credit please
contact me
through my form, or call me at (719)
320-8223.
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