$8,000 Home Buyer Tax Credit at a Glance...

 

  • What is the Home Buyer Tax Credit?
    • An actual credit applied to your tax return
    • For qualified first time home buyers only
    • Does not have to be repaid unless the home is sold within 3 years after purchase.
    • Equal to 10% of the home's purchase price up to $8,000
  • Who can claim the tax credit?
    • Qualified first-time homebuyers purchasing a principal residence (single family homes, townhouses, condominiums, manufactured homes, mobile homes, and houseboats used as a principal residence) after1/1/09 and before 12/1/09. Purchases made between 4/09/08 and 1/01/09 may qualify for a different tax credit.
    • You are considered a first-time home-buyer if you (and your spouse if married) did not own any other main home during the 3-year period ending on the date of purchase.  (If you constructed your main home, the purchase date is on the date you first occupied it.)
    • Single taxpayers with adjusted gross incomes up to $75,000 and married taxpayers with incomes up to $150,000 qualify for the full tax credit. (For information on "adjusted gross income" and partial tax credits for those with incomes above these limits, please visit www.federalhousingtaxcredit.com/2009/faq.php )
    • Non-residence aliens (as defined by IRS Publication 519) do not qualify.
  • How do I claim the credit?
    • The tax credit is claimed on your 2008 or 2009 federal income tax return. Use Form 5405 to calculate your tax credit amount and claim that amount on line 69 of Form 1040.  If you have already filed your 2008 tax return and have purchased a home since 1/01/09, you can file an amended return.  If you owe the IRS, the credit will be applied and you will receive a refund for the balance of the credit.  If you have already "settled up" with the IRS, then you should get the full credit as a tax refund!

So why wait?  Now is the PERFECT time to purchase a home...interest rates are low, inventory is great, and the $8000 tax credit is available for qualified first time home buyers!  Call us today at 770-548-7650!