The "NEW" housing tax CREDIT

Tuesday, February 17, 2009 - By Gate Arty

The American Recovery and Reinvestment Act of 2009 is now in effect. A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, that offered a $7500 deduction that had to be repaid, the new $8000 figure credit does NOT have to be repaid. The high points of the tax credit are as follows:

• It is for first-time home buyers only. A first-time home buyer is defined as as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
• This is a tax credit & does not have to be repaid. For example, If you owe $5,000 in taxes & qualify for the $8,000 credit, then you would get a REFUND of $3,000!  A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. Windfall!
• The duration of this program is only for homes purchased between January 1st, 2009 to December 1st, 2009. Act NOW!
• There is an income imit. It is $75,000 for singles & $150,000 for married couple's combined incomes.

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