Susanne and Erin

By now most 1^st time buyers know about the wonderful $8,000 tax credit available if you purchase from now until end of November, 2009. Here are some key points to help in explaining how this works and who it works for.

-         The tax credit is available for first time buyers only. (This is someone who has NOT owned a home in the last 3 years. If you are married and your spouse has owned in the last 3 years you do NOT qualify)

-         The tax credit does not have to be repaid. (In the past you did have to repay it but not now!)

-         You must live in the property you purchase, and it must be your principle residence.

-         The tax credit is equal to 10% of the home’s purchase price up to a maximum of $8,000. (As long as you buy something for at least $80,000, you get $8,000 back.)

-         The credit is available for homes purchased form January 1, 2009 until December 1, 2009.

-         Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

You claim the tax credit on your federal income form. Home buyers should complete an IRS form 5405, to determine their tax credit amount. Then the government sends you your check.  What another great reason to buy! Home prices are down and the government wants to give you money.

This information was gathered from the National Association of Home Builders. For more information visit their website at www.federalhousingtaxcredit.com for more information… or call us!

Talk to you soon!

Erin Goodwin