2009 First-Time Homebuyer Tax Credit

After the federal Stimulus Bill passed on February 17, 2009, there are a number of components aimed at revitalizing the real estate market. There is a new tax credit available to any homebuyer who has not owned a principal residence in the past 3 years. The qualifications are different from the tax credit of 2008, and does not necessarily need to be repaid. Below you will find a simplified list of eligibility requirements.

Who Qualifies: 

Any purchaser and purchaser’s spouse who has not owned a  principal residence in the past three years.

Eligible Properties: 

Any single family residence (including condos, co-ops, or townhouses) that will be used as your primary residence.

Income Limit: 

Full amount of credit available for persons with adjusted gross income of no more than $75,000 on an individual tax return OR $150,000 on a joint tax return. Phases out above those caps at $95,000 and $170,000 respectively.

Amount of Credit:  Lesser of 10% of cost of home OR $8,000.00

Qualification Dates:  Buyers must close on their home between January 1, 2009 and November 30, 2009 to qualify.

Repayment:  Unlike the 2008 tax credit, this credit will not need to be repaid to the government as long as the purchaser owns the property for a minimum of three years. If the home is sold within three years of purchase, the entire amount of the credit must be repaid from the sale proceeds.

Revenue Bond

Financing:    Purchasers who utilize revenue bond financing can qualify for this credit.

Retroactive: Because the bill was passed on February 17, 2009, this bill is retroactive for sales closed since January 1, 2009.

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