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Janet Resino, 2 years, 10 months ago

First time home buyers now have the benefit of a major tax credit, taken directly from the amount of taxes owed. It is being called the $8,000 first time home buyers credit however here are some of the facts:
First the credit is for 10% of the purchase price so properties over $80,000 will get the $8,000. Next you have to make less than $75,000 for a single person and $150,000 for for a couple. There is a fancy formula that will allow you less of a credit if you make more money. Third you or your spouse must not have purchased a primary residence home in the previous 3 years. What makes this credit interesting is that if you purchased a home in 2008, you can file an amended return and take the credit for 2008. You have until December 1, 2009 to purchase the home in order to take the credit in 2009. The credit does not need to be repaid (unlike the credit new homeowners credit of 2008 which did). The credit is refundable as well. If the amount of your income taxes is less than $8,000, the IRS will send you a check for the difference between the amount of taxes owed and the $8,000. If you sell the home before 3 years, you will be obligated to repay the entire $8,000. To claim the credit you file form 5405.

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