First Time Home Buyer Tax Credit
Claim your tax credit now when you buy your first home in Cary, Holly Springs, Apex, or the Raleigh Area.
This Market is Yours!
As part of the American Recovery and Reinvestment Act of 2009, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers. You don't have to repay the credit!
This is a great economic opportunity, but
Time Is Of The Esssence.
In 2008, Congress enacted a $7,500 tax credit designed to be an incentive for first-time home buyers to purchase a home. The credit was designed as a mechanism to decrease the over supply of available homes for sale.
In 2009, Congress increased the credit to $8,000 and has made several additional improvements. The revised $8,000 tax credit applies to homes purchased between January 1, 2009 and December 1, 2009.
Tax Credit Basics
What is the new homebuyer tax incentive for 2009?
The $7,500 (2008) repayable credit was increased to $8,000 and the repayment feature was eliminated for 2009 purchases. The credit is available for the purchase of a principal residence. Any home purchased for $80,000 or more qualifies for the full $8,000 credit. If a house costs less than $80,000, the credit will be for 10% of the cost. For example, if a buyer purchases a home for $70,000, they would receive a credit of $7,000.
The tax credit is “Refundable”
What does a “refundable” tax credit mean?
A person will receive the full amount of the allowable credit based on the purchase price, regardless of their tax liability for the year. For example, if a home buyer qualifies for the entire $8,000 tax credit and has a tax liability of $6,000, then the IRS will send the purchaser a check for the difference of $2,000.
Who is eligible?
First time homebuyers are eligible. A person is considered a first time home buyer if they have not had ownership in a home in the 3 years previous to the 2009 purchase.
Learn more by reading these Frequenty Asked Questions about the 2009 Homebuyer Tax Credit.
Additional 2009 Home Buyer Tax Credit information can be found at the National Association of REALTORS®.
The Internal Revenue Service offers several options to help maximize your First Time Home Buyer Tax Credit.
Download the IRS First-Time Homebuyer Tax Credit Form 5405.
Contact Barry to learn more about purchasing your new home and receiving your tax credit.
The content provided here is for informational purposes and does not encompass the entire program. This information is not considered to be legal or tax advice. Each individual circumstance is different and you should consult your attorney and/or tax advisor for tax or legal advice.
This page was last updated on Oct. 24, 2009
