FIRST TIME HOME BUYER TAX CREDIT- THE FACTS

The American Recovery and Reinvestment Act of 2009
authorizes a tax credit of up to $8,000 for qualified first-time
home buyers purchasing a principal residence on or after
January 1, 2009 and before December 1, 2009.

1.Who is eligible to claim the tax credit?
First-time home buyers purchasing any kind of home ”new
or resale€”are eligible for the tax credit. For the purposes of
the tax credit, the purchase date is the date when closing
occurs and the title to the property transfers to the home
owner.

2.What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has
not owned a principal residence during the three-year
period prior to the purchase.

3.How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s
purchase price up to a maximum of $8,000.

4.Are there any income limits for claiming the tax credit?
Yes. The income limit for single taxpayers is $75,000; the
limit is $150,000 for married taxpayers filing a joint return.

5.How is this home buyer tax credit different from the
tax credit that Congress enacted in July of 2008?
The most significant difference is that this tax credit does
not have to be repaid. Because it had to be repaid, the
previous "credit" was essentially an interest-free loan. This
tax incentive is a true tax credit. However, home buyers
must use the residence as a principal residence for at least
three years or face recapture of the tax credit amount.

More FAQ’s at www.federalhousingtaxcredit.com