The first time homebyer credit is a new tax credit included in the Housing and Economic Recovery Act of 2008. The credit was expanded for homes purchased in 2009 by increasing the credit amount and eliminating the requirement to repay the credit as long as the home remains as a principal residence for 3 years.
The credit is 10% of the purchase price of the home with a maximum credit amount of $8,000. The amount is reduced if you file married filing seperately.
Any home purchased as a primary residence in the US qualifies. Vacation and Investment properties do not qualify. You must purchase the home before December 1, 2009 and if you are building a home, the purchase date is the date you occupy the home.
If you have owned a principal residence at any time during the 3 years prior to the purchase, the credit will not be awarded. The credit is claimed on IRS form 5405 - First Time Homebuyer Credit.
There are income limits to the creidt. The credit is reduced or eliminated for higher income taxpayers. The credit is phased out at married filing joint income of $150,000 to $170,000. For other taxpayers, the range is $75,000 to $95,000.
The credit is filed for after the sale is complete. You cannot claim the credit before going to settlement.
The credit is fully refundable, even if you do not owe any tax.
The first time homebyer credit is a new tax credit included in the Housing and Economic Recovery Act of 2008. The credit was expanded for homes purchased in 2009 by increasing the credit amount and eliminating the requirement to repay the credit as long as the home remains as a principal residence for 3 years.
The credit is 10% of the purchase price of the home with a maximum credit amount of $8,000. The amount is reduced if you file married filing seperately.
Any home purchased as a primary residence in the US qualifies. Vacation and Investment properties do not qualify. You must purchase the home before December 1, 2009 and if you are building a home, the purchase date is the date you occupy the home.
If you have owned a principal residence at any time during the 3 years prior to the purchase, the credit will not be awarded. The credit is claimed on IRS form 5405 - First Time Homebuyer Credit.
There are income limits to the creidt. The credit is reduced or eliminated for higher income taxpayers. The credit is phased out at married filing joint income of $150,000 to $170,000. For other taxpayers, the range is $75,000 to $95,000.
The credit is filed for after the sale is complete. You cannot claim the credit before going to settlement.
The credit is fully refundable, even if you do not owe any tax.