First Time Homebuyer Tax Credit
The American Recovery and Reinvestment Act of 2009 features an $8000 tax credit for first-time buyers who purchase a home on or after January 1, 2009 and before December 1, 2009.
The temporary credit is only available for home purchases made from January 1, 2009 to before December 1, 2009 and is equal to 10 percent of the cost of the home up to a maximum credit of $8000.Buyers claim the credit on their federal tax return to reduce their tax liability. If the credit is more than their total tax liability that year, the buyer will get a refund check for the balance.Only first-time homebuyers can take advantage of the tax credit. A first-time homebuyer is defined under the tax credit as an individual who has not owned a home in the last three years. For married joint filers, both must meet the first-time homebuyer test to take the credit on a joint return.Eligible properties can include anything that will be used as a principal single-family residence - including condos and townhomes.There are income guidelines on the credit. Individual with an adjusted gross income up to $75,000 (or $150,000 if filing jointly) are eligible for the full tax credit. The credit id phased down for those earning more and is not available for those with an income above $95,000 (or $170,000 if filing jointly.)The new tax credit does not have to be repaid if the buyer stays in the home at least three years. If the home is sold beofre that, the entire amount of the credit is recaptured at the sale.If you or someone you know may benefit from this, please give us a call at 207-689-9898. We will also be happy to send out a packet of info on the first-time homebuyer credit to you or any friends or family who may be interested.The Steve Morgan Group
Keller Williams Realty Mid Maine
34 Center Street Auburn ME 04210
207-689-9898
steve@stevemorgangroup.com
Keller Williams Realty Mid Maine
34 Center Street Auburn ME 04210
207-689-9898
steve@stevemorgangroup.com
