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Federal First-Time Home Buyers Tax Credit
Time is rapidly running out for a popular federal program that provides eligible consumers the opportunity to receive a tax credit of up to $8000 for the purchase of a home. The Federal First-Time Home Buyers Tax Credit was introduced by the Obama Administration as part of the American Reinvestment and Recovery Act of 2009. The program is set to expire November 30. For some, the program is ending too prematurely. Efforts are underway to extend the program with some discussion of expanding the stimulus to everyone.
Eligibility
Consumers may qualify as a new home buyer if they have not owned their residence for three years prior to the upcoming purchase. However, the program considers the homeownership history of both the buyer and his or her spouse when the purchaser is married. Buyers still meet program eligibility if their ownership is for a vacation or rental property not considered their primary residence.
The eligibility income limit for single consumers is $75,000. Income limits for married consumers who file a joint tax return is $150,000. According to federalhousingtaxcredit.com, the tax credit amount is reduced to zero for taxpayers with modified adjusted gross income (MAGI) of more than $95,000 for singles or $170,000 for couples who are married and is reduced proportionally for taxpayers with MAGIs between these amounts.
Looming Deadline
Under the current deadline to receive the tax credit, the purchase of the home must be completed before December 1, 2009. Depending on the lender and the unique credit and employment history of the purchaser, duration to close on a home can range from seven to 60 days.
The credit is equal to 10 percent of the purchase price not to exceed $8000.
Visit federalhousingtaxcredit.com for more detailed information.