Highlights of the 2009 First-Time Homebuyer Tax Credit
April 16, 2009 ·  

tax-credit_faqRecently, I have received many questions from prospective homebuyers about the 2009 homebuyer tax credit bill — which provides $8,000 tax credit to first-time homebuyers for the purchase of their principal residence between January 1, 2009 and December 1, 2009.   I wanted to share with you a very informative FAQ (http://tinyurl.com/b8mysm)from National Association of Realtors (NAR) to address many of your questions and concerns about the details of the bill.

Here are some highlights:

  • You must be a “first-time” homebuyer, which is defined as someone who has not owned a home in 3 years prior to the day of your 2009 purchase.
  • The 2009 tax credit is refundable (i.e. IRS will send you a refund check if your tax liability is less the $8,000).
  • The income restriction for a full tax credit is $75,000 for individuals and $150,000 for married couples.
  • You may receive partial credit for income up to $95,000 for individuals and $170,000 for married couples.
  • The home must be your principle residence and owner-occupied.
  • You do not have to repayment 2009 tax credits; However, if you sell the property within 3 years of the purchase, your are required to pay back the full amount of any credit, including any refund you received from it.
  • You can claim your 2009 tax credit when filing your 2008 tax returns by April 15, 2009.
  • Close of escrow must occur on or before Dec. 1, 2009; if the property is under construction when purchased, you must occupy the home before Dec. 1, 2009.

If you enjoyed this post, subscribe to the Author's RSS feed or the Blog's RSS Feed!

Filed Under F A Q, Important Thoughts, Neighborhood News, Real Estate for Buyers and Sellers, Real Estate in the News

Tags: , , , , , ,

Print Print    |    Email Email

Comments

5 Responses to “Highlights of the 2009 First-Time Homebuyer Tax Credit”

  1. Brian Boisson on April 16th, 2009 8:51 am

    Thank you Annie for sharing that.

    A key part of the program is escrow must close by December 1.

    I would venture to say that we will be busy summer and early fall when buyers realize that deadline is approaching.

    So, we should remind our buyers that, depending on inventory, there may be less to choose from the closer we get to December.

    Brian

  2. michael monozon on April 17th, 2009 9:32 am

    Great information Annie, thank you for sharing, I believe Brian’s comments are also very important.
    Timing is so critical in this market place that seems to be changing daily.
    Information is so powerful.

  3. Adam Chinn on April 18th, 2009 7:26 pm

    Thanks Annie,
    I’m sure we will have to remind everyone of the deadline as it gets closer, there may be a surge of people rushing to close by Dec 1st towards the end of the year. Thanks again,

  4. Larry Franzella on April 20th, 2009 1:04 pm

    Great information!

    Larry

  5. Lee Ginsburg on May 4th, 2009 8:42 pm

    Thanks for the clear break down. So much better than the old administration’s “Interest Free Loan”.
    They have made this almost like an instant rebate with being able to buy today and ammend your 2008 taxes.
    The next step I have heard some states offering a bridge loan so you may use the $8000 towards the down payment. How awsome is that!!!

Leave a Reply