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Home About Us News Tips Links Events	UNDERSTANDING THE FIRST TIME HOME BUYER TAX CREDIT… In 2008, Congress created a $7,500 1st time Homebuyer Tax Credit that went into effect on April 8, 2008 and was set to expire on July 1, 2009. This program requires the $7500 be repaid in $500 payments each year for 15 years. If you purchased your first home within this time line, are still subject to the terms of the repayable credit. Too few consumers took advantage of this incentive, many feeling that it was a debt, not a benefit. In steps the National Association of Realtors® with success in urging Congress to eliminate the re-payment requirement in 2009. What we currently have as a First Time Home Buyer Credit is $8,000. It replaces the previous Tax Credit and runs through December 31, 2009. It is a REFUNDABLE Tax Credit (or up to 10% of the purchase price). Refundable means that if your total tax liability in a given year is less than $8,000, the IRS will send a refund for the balance. A First Time Homebuyer is defined as someone who has not ever owned a home or someone who has not owned a home during the three years prior to the date of purchase. The home must be located in the United States. Vacation Homes and Rental properties are ineligible for the credit. As with most programs of this type, there are exceptions to qualifying. Joint filers with Modified Adjusted Gross Income (MAGI) of $170,000 and above will not qualify nor will other taxpayers with MAGI greater than $94,999 If you purchase your home from a close relative you are exempt from the tax credit. This includes, spouse, parent, grandparent, child or grandchild. If you stop using your home as a primary residence, the tax credit must be repaid. The tax credit must be repaid if you sell your home before the end of three years. If you are a non-resident alien, you will not qualify. This information is accurate as of March 17, 2009. As with any tax law change, check with a tax advisor if there any questions regarding use of this provision. Pattie Palzet-Taylor, President * RE/MAX American Dream

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UNDERSTANDING THE FIRST TIME HOME BUYER TAX CREDIT…

In 2008, Congress created a $7,500 1st time Homebuyer Tax Credit that went into effect on April 8, 2008 and was set to expire on July 1, 2009. This program requires the $7500 be repaid in $500 payments each year for 15 years. If you purchased your first home within this time line, are still subject to the terms of the repayable credit. Too few consumers took advantage of this incentive, many feeling that it was a debt, not a benefit.

In steps the National Association of Realtors® with success in urging Congress to eliminate the re-payment requirement in 2009. What we currently have as a First Time Home Buyer Credit is $8,000. It replaces the previous Tax Credit and runs through December 31, 2009. It is a REFUNDABLE Tax Credit (or up to 10% of the purchase price). Refundable means that if your total tax liability in a given year is less than $8,000, the IRS will send a refund for the balance.

A First Time Homebuyer is defined as someone who has not ever owned a home or someone who has not owned a home during the three years prior to the date of purchase.

The home must be located in the United States. Vacation Homes and Rental properties are ineligible for the credit.

As with most programs of this type, there are exceptions to qualifying.

Joint filers with Modified Adjusted Gross Income (MAGI) of $170,000 and above will not qualify nor will other taxpayers with MAGI greater than $94,999
If you purchase your home from a close relative you are exempt from the tax credit. This includes, spouse, parent, grandparent, child or grandchild.
If you stop using your home as a primary residence, the tax credit must be repaid.
The tax credit must be repaid if you sell your home before the end of three years.
If you are a non-resident alien, you will not qualify.

This information is accurate as of March 17, 2009. As with any tax law change, check with a tax advisor if there any questions regarding use of this provision.

Pattie Palzet-Taylor, President * RE/MAX American Dream