To stimulate the U.S. housing market, Congress passed a legislation granting a tax credit up to a maximum amount of $8,000 to first time buyers who purchase a home from January 1, 2009 to December 1, 2009. To qualify as a first time buyer, you may not have owned a residence during the 3 years prior to the purchase.
The tax credit does not need to be repaid if you occupy the home for 3 or more years. If the home is sold before the 3 year period, the credit will be recouped on the sale.
The tax credit is determined by 2 factors:
- The credit is equal to 10% of the purchase price up to $8,000.
- The buyer’s income- $75,000 for a single buyer, $150,000 for married couples
If the buyer’s income exceeds these limits, the credit decreases for a single buyer who earns between $75,000 and $95,000, $150,000 and $170,000 for buyers filing jointly. The amount decreases as your income approaches the maximum limit. For those earning more than the qualifying income, they are not eligible for the credit.
It’s now time for the home buyers to get off the fence and get serious if you want to take advantage of this tax credit. The busy spring buying season is here. Additonally, it takes several months to get lender approval on short sales. Hook up with an agent who knows the area where you are buying and will spend the time understanding your needs to make your home search easier for you.
Elizabeth M. Eugenio, (909) 376-8615
Certified Residential Specialist, Certified Distressed Property Expert, Graduate Realtor Institute.
Website: www.HomesByLiz.com, email: Elizabeth@HomesByLiz.com
To get homes that match your search criteria emailed to you as soon as they become available, sign up at: www.TheChinoHillsMLS.com.
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