2008 Home Buyer Tax Credit
2009 FIRST-TIME HOMEBUYER TAX
CREDIT:
Most of the mechanics of the credit will be the same as
under the 2008 rules: the credit will be claimed on a tax
return to reduce the purchaser’s income tax liability. The
one major difference is the fact that repayment of the
credit will no longer be required. If any credit amount
remains unused, then the unused amount will be refunded as a
check to the purchaser. Below are the principle pieces of
the tax credit.
Amount of Credit - Maximum credit amount increased to
$8000.
Eligible Property - Any single family residence that
will be used as a principal residence.
Refundable - Reduces (or can eliminate) income tax
liability for the year of purchase. Any unused amount of tax
credit refunded to purchaser.
Income Limit - Full amount of credit available for
individuals with adjusted gross income of no more than
$75,000 ($150,000 on a joint return). Phases out above those
caps ($95,000 and $170,000).
First-time Homebuyer Only - Purchaser (and
purchaser’s spouse) may not have owned a principal residence
in 3 years previous to purchase.
Revenue Bond Financing - Purchasers who utilize
revenue bond financing can also use this credit.
Repayment - No repayment for purchases on or after
January 1, 2009 and before December 1, 2009.
Recapture - If home is sold within three years of
purchase, entire amount of credit is recaptured on sale.
Applies only to homes purchased in 2009.
Termination - December 1, 2009
Effective Date - All revisions are effective as of
January 1, 2009
*information courtesy of
MetroTex Association of Realtors
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