FIRST-TIME HOME BUYER CREDIT

FIRST-TIME HOME BUYER CREDIT
WHO DO YOU KNOW THAT SHOULD BUY A HOME RIGHT NOW?
⇒ Payments may be lower than rent!
⇒ Home prices are amazing!
Here are the important highlights of the $8,000 First Time Home Buyer Credit of 2009:
The Treasury Department has moved at record speed to implement one piece of the new
American Recovery and Reinvestment Act of 2009 Act (also known as the stimulus act).
􀂃 Forms and regulations are already in place for homebuyers who wish to claim the first-time
credit enabled under the act.
􀂃 The credit is available to first time homebuyers who purchase a home before December 1,
2009.
􀂃 Homebuyers can claim the credit either on their 2009 tax return or immediately on the 2008
return due in April.
􀂃 The tax credit represents 10 percent of the purchase price of a home up to a maximum of
$8,000 or $4,000 for married taxpayers filing separate returns.
􀂃 The $7,500 credit that was authorized under earlier legislation last year was actually a 15
year loan; the new tax credit does not have to be repaid by the homeowner under ordinary
circumstances.
􀂃 The credit does have to be repaid if the homeowner sells the home in less than 36 months
or if the home ceases to be his principal residence during that time.
􀂃 For the purpose of this credit, a first time homeowner is defined as one who has not
owned a home for the 36 months ending on the date of purchase.
􀂃 The credit is available to taxpayers with adjusted gross incomes up to $75,000 or $150,000
for married taxpayers filing jointly. Above those income levels the credit is phased out
gradually.
􀂃 Homeowners who purchased a house between April 8 and December 31, 2008 are not
eligible for the new credit. They are covered by the earlier legislation and can claim the
$7,500 repayable credit.
􀂃 Forms and instructions for claiming the credit on 2008 tax returns are available at
www.irs.gov. The form number is 5405.