First Time Home Buyers
The First-Time Home Buyer Tax Credit expires December 1, 2009. What does this mean for a potential homebuyer? Get movin’.
Assuming a 60-day window between contract and closing, there is a 77-day window to identify the home, negotiate a price, and execute a contract. Thinking short-sale? You have 13 minutes to get that first offer out.
The First-Time Home Buyer Tax Credit refunds up to $8,000 at Tax Time for qualified home buyers. Key qualification criteria include:
- Home buyer must not have owned a primary residence in the past 36 months
- The home may not be purchased from a family member
- The household adjusted gross income must be below $95,000 for single tax filers and $170,000 for joint tax filers
The tax credit itself is limited to $8,000 or 10% of the purchase price, whichever is less.
Remember, though: The refund is a true tax credit — not a deduction. This means that a taxpayer owing $8,000 to the IRS and claiming the $8,000 First-Time Home Buyer Tax Credit would owe the IRS nothing on April 15, 2010.
The complete list of qualifying criteria is posted on the IRS website.
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