What is the homebuyer tax credit?

  • A tax credit for eligible first-time homebuyers who purchase either a resale or new home. An eligible first-time homebuyer is a buyer who, along with his or her spouse, has not owned a principle residence during the last three years.
  • The full tax credit is available for individual taxpayers with a modified adjusted gross income up to $75,000 and for married taxpayers with adjusted gross income up to $150,000. It is completely phased out for individual taxpayers and married taxpayers with a modified adjusted gross income of $95,000 and $170,000 or higher.
  • A tax credit reduces your tax liability dollar for dollar

How much is the first time homebuyer tax credit?

  • $8,000 ($4,000 if married filing separately) or 10% of the purchase price of the home whichever is less.
  • Unlike the homebuyer tax credit in the 2008 Housing and Economic Recovery Act, the tax credit DOES NOT require repayment. It is a TRUE tax credit.
  • If you sell the home and net a gain within the first 36 months after you purchased the home, the government wants all of the tax credit you received back. 
  • If the home ceases to be your primary residence within the first 36 months after you purchased the home, the government wants all of the tax credit you received back.

How to get the first time homebuyer tax credit?

  • Be a first time homebuyer and purchase a home between January 1, 2009 and before December 1, 2009.
  • Take the credit on your 2009 Federal Income Tax return or you can take the credit on your 2008 Federal Income Tax return if you file an amended return.

Should you have any questions give me call at  972.588.8918 or visit my website at HallTeam.com.