- The American Recovery and Reinvestment act of 2009 authorized a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.
- Any home that will be used as your principal residence qualifies for the tax credit.
- The law defines a "first-time home buyer" as a buyer who has not owned a principal residence during the three-yaer period prior to the purchase.
- First-time home buyers purchasing any type of home, new or resale, are eligible to receive the tax credit as long as the closing date and title transfer occurs before December 1, 2009.
- The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
- The income limit for single taxpayers is $75,000 and $150,000 for a married taxpayers filling a joint return.
- The money comes in the form of a tax refund, meaning that you will not receive the money until after the house is bought and your 2009 tax return is filed.
- If you are seeking an FHA (Federal Housing Administration) loan, the federal $8,000 tax credit may be used toward your down payment or closing costs.
The $8,000 tax credit has been motivating first-time buyers to take advantage of current real estate market conditions. Buyers can look at this refund as a reduction in their home price, with a $100,000 purchase effectively becoming a $92,000 once the credit is awarded. The fact is that this credit has made the dream of home ownership a reality for many who may not have had the opportunity before.
We encourage you to consult with a qualified tax advisor or legal professional about your unique situation.
SI Real Estate, Tampa's premier real estate boutique, will be holding an information session for first-time home buyers on August 2 at the Courtney Palms clubhouse to help discuss what you need to know in order to be a prepared buyer in today's Tampa Bay real estate communities/ Please join us for this exciting event! Send RSVP to Info@SIRealEstateInvestments.com or call (813) 631-5144 to reserve your spot.