RE/MAX of Indiana

$8000 Tax Credit for First-Time Home Buyers

Aspiring home owners now have one more incentive to get into their first home this year: a government tax credit of up to $8000!

A home is one of the most important purchases many of us will ever make. And the costs of a new home do not stop at the closing table. Once you move in, there is the purchase of new furniture, renovations and remodeling, and other unexpected expenses that can crop up and put a dent in your pocket book. This new tax credit can help ease the transition and help cover the new expenses that come with home ownership. And this tax credit does not have to be repaid, as long as you live in your new home for at least three years after purchase.

This tax credit is part of the American Recovery and Reinvestment Act of 2009.  Enacted on February 17, 2009, the tax credit is designed to stimulate the economy and housing market.

Who Qualifies?

This tax credit is designed for first-time home buyers only. A first-time home buyer is anyone who has not owned a principle residence at any  time during the three-year period leading up to the purchase of the new home.

You may qualify for the tax credit if you are a first-time home buyer purchasing a home-new or resale-between January 1, 2009 and December 1, 2009. All types of homes qualify for the credit, including single-family, townhomes, and condominums, as long as the property purchased will be used as a primary residence.

The amount of the tax credit is up to 10% of the purchase price of the home with a maximum of $8000.  Single taxpayers with incomes of up to $75,000 and married taxpayers with incomes of up to $150,000 can qualify for the full tax credit.  You may qualify for a partial tax credit if your income is greater than $75,000 to $95,000 for a single taxpayer and $150,000 to $170,000 for married taxpayers filing a joint return.

Source: National Association of Home Builders (NAHB)

For more information, please visit www.federalhousingtaxcredit.com