8000 home buyers tax credit?

Time is running out so hurry to make your purchase if you want to take advantage of the 8000 home buyers tax credit.

First-time home buyers purchasing homes between January 1, 2009 and December 1, 2009 are eligible to receive the 8000 dollar home buyers tax credit. To be considered a “first-time” home buyer, you or your spouse may not have owned a home or residence during the prior three years to your new home purchase. Remember the 8000 home buyers tax credit only applies to properties that will be a primary residence such as single family residence,  condos, townhouses and even co-ops.

According to NAR:

The $8000 home buyers credit break down as follows:

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors: The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000. The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Lastly, the credit does not need to be repaid as long as you or your spouse occupy your home for at least a three year period.  However, if  you do sell the property within the three year period, the credit will be recouped upon the sale.