Home buying tax credit information

American Recovery and Reinvestment Act (ARRA). There is important news for future homebuyers included in this legislation: an $8,000 home buyer tax credit (also known as a housing tax credit) available to first time buyers!

Here are some important details of the home buyer tax credit included in the ARRA:

1. This tax credit is only available to first time buyers. The law defines a first-time buyer as someone who has not owned, or been included on title to, a property in the last three years. All home buyers who will be on title need to be first time buyers (for married couples BOTH spouses must qualify as first-time buyers).

2. Both resident and non-resident aliens who are not U.S. citizens can qualify for this tax credit.

3. The house must be purchased between January 1, 2009 and December 1, 2009.

4. The tax credit is actually calculated as 10% of the purchase price of the home, up to a maximum of $8,000.00. To qualify for the full $8,000 – the property price must exceed $80,000.00

5. There are income limits on this tax credit. First-time buyers with gross annual income of $75,000 or less will qualify for the full benefit. The credit is scaled (reduced) for gross individual