May 21, 2009: First-Time Homebuyer Tax Credit (The Essentials)

No need to go to a seminar or be subject to a Realtor sales pitch. Here is all you need to know about the First-Time Homebuyer Tax Credit, current as of May 21, 2009.

AMOUNT OF CREDIT: 10% of purchase price, up to a maximum of $8000.00.

DATES OF ELIGIBILITY: Through December 1st, 2009.

FIRST-TIME HOMEBUYER REQUIREMENT: Buyers may NOT have owned a principal residence in the last three years preceding the purchase.

INCOME LIMITS: Full credit available to individuals with an adjusted gross income (AGI) of no more than $75,000.00 ($150,000.00 on joint return). Credit phases out for AGIs up to $20,000 above those caps.

ELIGIBLE PROPERTY TYPES: Any single family residence that will be used as a primary residence, including condos, co-ops and townhouses.

REPAYMENT: None.

RECAPTURE: If the home is sold within three years of purchase, the entire credit is recaptured upon sale.


I have had many inquiries on this topic. The record should now be straight!