Charlotte, NC Real Estate News

$8000 First Time Home Buyer Tax Credit until December 1, 2009

In its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers in 2009.

First Time Home Buyer Tax Credit at a Glance

• The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The credit is available for homes purchased on or after January 1, 2009 and closed on before December 1, 2009.
• The credit is for $8,000 or 10% of the home’s value, whichever is less.
• The tax credit does not have to be repaid if you own your home for at least 3 years.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
• It phases out for incomes between $75,000 to $95,000 for single and $150,000 to $170,000 for couples.
• Taxpayers who qualify for the first-time home-buyer credit and purchase a home in 2009 before December 1 may claim the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.
• Consult your accountant as to which option is best for you.

Visit the Federal Housing Tax Credit website for more details.