First-Time Buyer Tax Credit – Now is a great time to be a home buyer

The Housing and Economic Recovery Act of 2008 may allow first time homebuyers to receive a tax credit of up to $7,500. The credit expires in June 2009. The amount of credit is 10% of the cost of the home, not to exceed $7,500. This credit is refundable and will reduce your income tax liablility for the year of purchase when claimed on your tax return.

The Housing and Economic Recovery Act of 2008 may allow first time homebuyers to receive a tax credit of up to $7,500.  The credit expires in June 2009.  The amount of credit is 10% of the cost of the home, not to exceed $7,500.  This credit is refundable and will reduce your income tax liability for the year of purchase when claimed on your tax return.

There are income limits; individuals with an adjusted gross income of no more than $75,000 ($150,000 on a joint return) receive the full amount of credit available.  The tax credit phases out above those caps ($95,000 and $170,000 respectively).  Those who qualify as a first-time homebuyer will have to show that they have not owned a principal residence in the last 3 years.

To find out more, go to:

http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf