8,000 Reasons to Buy a First Home

First-time home buyers who purchase a home before December 1, 2009 may be eligible to take advantage of an $8,000 tax credit as part of the American Recovery and Reinvestment Act of 2009.  Qualifying first-time home buyers may claim a tax credit of ten percent of the purchase price, up to $8,000, or $4,000 for married individuals filing separately. The tax credit begins to phase out for those whose adjusted gross income exceeds $75,000, or $150,000 for joint filers.

Buyers must purchase a home before Dec. 1, 2009 to be eligible and the credit may be claimed on a home buyer’s 2008 or 2009 tax return. Filing an amended 2008 return after purchasing a home provides an option to buyers who wish to receive the credit sooner.

Unlike the previous $7,500 credit available to first-time buyers, the credit outlined in the American Recovery and Reinvestment Act of 2009 does not have to be paid back as long as the home remains the buyer’s primary residence for at least 36 months after the date of purchase. First-time buyers, for the purpose of this credit, are those who have not owned a home in three years.

If you or anyone you know would like to take advantage of this program by purchasing a home, please do not hesitate to let me know.

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