Part of the $787 billion stimulus bill that President Obama signed into law on Tuesday includes the $8000 first-time home buyer tax credit. I am pointing out a few of the highlights.
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- $8000 to First Time Buyers: Equivalent to 10% of the purchase price and capped at $8000. This applies to first-time home buyers and principal residences. This tax credit does not have to be repaid, unlike the earlier $7500 tax credit.
- Definition of First Time Buyer: Someone who hasn't owned a principal residence for three years before buying a house. If you have owned a vacation home, but not a principal residence with the past 3 years, you would qualify.
- Income Limits: Single buyers need a modified adjusted gross income of $75,000 or less to qualify for full credit, or $150,000 for married couples. Reduced credits may be available for income beyond these caps.
- Must Buy in 2009: Only those who purchase after January 1 and before December 1, 2009 are eligible.
- Refundable: Buyers can take advantage even if they have little tax liability.
- Ownership: Buyers must own the home at least three years. If they sell before 3 years, the credit has to be returned to the government (some exceptions such as divorce, death)
Should you have legal or tax questions, we ask that you consult your attorney or accountant. To view homes available in Wilmington, NC, click Here
Diane, I'm assuming that the $7500 tax credit would apply for the 2008 first time homebuyer...is that your understanding?
Gena,
My understanding is the $7500 applies to those who purchased in 2008 (and has to be repaid), and the $8000 does not have to be repaid. A great opportunity for first-time home buyers.