First-time Homebuyer Tax Credit
FEATURE
CREDIT AS CREATED JULY 2008
APPLIES TO ALL QUALIFIED
PURCHASES ON OR AFTER APRIL9, 2008
REVISED CREDIT -
EFFECTIVE FOR PURCHASES ON
OR AFTER JANUARY 1, 2009 &
BEFORE DECEMBER 1, 2009
Amount of Credit
Eligible Property
Refundable
Income Limit
First-time
Homebuyer
Only
Revenue Bond Financing
Repayment
Termination
Recapture
Effective Date
Major Modifications Italicized
Source: REALTOR.ORG
February 2009
Lesser of 10 percent of cost of home or $7500
Maximum credit amount increased to $8000
No change
All principal residences eligible.
No Change Purchaser will continue to receive refund for unused amount when tax return is filed.
No change
Same income limits continue to apply.
Any single family residence (including condo, co-ops, townhouses) that will be used as a principle residence.
Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.
Yes. 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).
Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.
No credit allowed if home financed with state/local bond funding.
Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.
If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale.
July 1, 2009
(But note program changes for 2009)
Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year.
No change
Still available for first- time purchasers only. Three - year rule continues to apply.
Purchasers that utilize revenue bond funding can use credit.
No repayment for purchases on or after January 1, 2009 and before December 1, 2009.
If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009
December 1, 2009
All revisions are effective as of January 1, 2009
To take advantage of the FIRST-TIME HOMEOWNERS TAX CREDIT or for more information Call Drew at 540-450-1216
