New Changes to the Home Buyer Tax Credit.  I thought I would try to talk about it here as simply as possible.

2009 Home Buyer Tax Credit

• Tax Credit is a True Tax Credit.  There is no repayment of it, unless you sell your home within 3 years. The "recapture" would take place at the sell of the home.
• $8,000 Maximum limit – For First Time Home Buyers
  • First Time Home Buyer is defined as someone who hasn’t owned a principal residence in the past 3 years.
• 2009 Buyer only: Jan1 to Dec 1st of 2009.
• Income Limits:  Single is $75,000 and Married is $150,000 based on modified adjusted gross income.  Those earning more, would have a reduced credit.
• The credit is equivalent of 10% of the purchase price of the home, maxing out at $8,000.

Just a note, I’m not a CPA or an attorney, this is just to inform not advise.

Tagged as: 3 years, Buyer, buyers, credit, first, first time home, homes, modified adjusted gross income, taxes, time home, time home buyer