2009 First-Time Home Buyer Tax Credit Info

Written by JOE RUNFOLA, Broker in Staten Island

May 20, 2009 5:23 PM Home Buying

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WHO QUALIFIES? First time buyers who purchase homes between January 1, 2009 and December 1, 2009. To qualify as a first time home buyer the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
WHICH PROPERTIES ARE ELIGIBLE? The 2009 first time home buyer tax credit may be applied to primary residences, including:single family homes, condos, townhouses, and co-ops.
HOW MUCH WILL THE CREDIT BE? The maximum allowable credit for home buyers is $8,000. Each home buyer’s credit is determined by two factors: The price of the home-the credit is equal to 10% of the purchase price of the home, up to $8,000. and the buyer’s income-single buyers with incomes up to $75,000. and married couples with incomes up to $150,000.-may receive the maximum tax credit.
IF THE BUYER(S)’ INCOME EXCEEDS THESE LIMITS, CAN HE/SHE STILL GET a CREDIT? Yes, some buyers may still be eligible for the credit. The credit decreases for buyers who earn between $75,000. and $95,000. for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum qualifying income-over $95,000 for singles and over $170,000. for couples are not eligible for the credit.