Tax Credit for Home Buyers

What a great time to buy a house!  If you are a first time home buyer, or haven’t owned a home in three years, there is an excellent reason to not wait any longer to purchase your dream home…a tax credit that can put money back in your pocket for buying a house!

Here are facts about the American Recovery & Reinvestment Act of 2009

Who is eligible?  Buyers who have not owned a home during the preceding three years.  You may qualify for the tax credit even if you and your spouse owned a home more than three years ago.  Single buyers can earn up to $75,000 a year, and married couples up to $150,000 a year.

How much?  The tax credit is based on 10% of the purchase price of the house…up to a maximum of $8,000.

What properties are eligible?    The tax credit applies to any single family residence, including condos, co-ops, and townhouses, that will be used as the primary residence.  Vacation homes and rentals are not eligible.

How does it work?  The tax credit reduces your tax bill  or increases your refund, dollar for dollar.  It is fully refundable, meaning the credit will be paid out directly to the purchaser, even if you owe no tax or the credit is more than the tax you owe.  There is no repayment required if the buyer keeps the home for at least three years.  Buyers are permitted to claim the tax credit on their 2008 taxes, even though the house closing occurs in 2009.  An amended 2008 tax return may be filed after closing.  Or the tax credit can be taken for 2009. 

Is there a deadline?  Home must be purchased and closed between January 1, 2009 and November 30, 2009

Please contact me if you have any questions or you are ready to pursue purchasing a home and taking advantage of this credit!  Call or email me for my list of Best Buys in the Joplin, MO area.

Cindy Moore,

Your Joplin Realtor

417-529-8525

Cindy@yourjoplinrealtor.com

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