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Right now, a $7,500 tax credit is being offered by the government to enable aspiring homeowners to buy their first home.1
If you are eligible, the tax credit can help ease the financial transition from renting to owning. It can assist with buying furniture and home-décor; making home improvements – like remodeling, landscaping and painting; or paying down debt as you adjust to new monthly expenses. Homes purchased between April 9, 2008 and June 30, 2009 are eligible.
The tax credit is part of the Housing Economic Recovery Act of 2008, signed into law on July 30, 2008, and enacted to help stabilize the housing market and strengthen our overall economy. The first-time home buyer tax credit is one of the key provisions in this legislation as it provides a financial resource for first-time home buyers.
Are you eligible for the tax credit?
The tax credit is designated for first-time home buyers.2 A first-time home buyer is defined as a buyer who has not owned a home in the last three years.
The tax credit is equal to ten percent of the home purchase price, which is capped at $7,500. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. Single taxpayers with incomes between $75,000 and $95,000, and married couples with incomes between $150,000 and $170,000 qualify for partial credit.
All homes purchased between April 9, 2008 and June 30, 2009 including single-family, townhomes, or condominiums will qualify for the tax credit, provided that the home is used as the principal residence. This also includes new construction homes if occupied by June 30, 2009.
To learn more about obtaining the tax credit and repayment, visit the Frequently Asked Questions.
For further information about eligibility requirements and limitations, visit www.irs.gov.
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