The Somers on Twitter The Somers on Facebook
The Somers Blog Philadelphia Real Estate Voice

The Somers Team: Philadelphia Real Estate
Cardinal Financial Company

$8,000 First Time Homebuyer Tax Credit

In our quest to continue to provide excellence to you, please find below the key points of the First Time Homebuyer Tax Credit that became law through the H.R. 3221 Housing and Economic Recovery Act of 2009. Please feel free to contact us should you have further questions. If this information is not applicable to you, feel free to pass it on to your friends and family. We appreciate your trust.

Feature

Housing and Economic Recovery Act of 2009
Amount of Credit Ten Percent of the cost of home, not to exceed $8000
Examples:
  • If a home costs $65,000 the allowable credit would be $6,500
  • If a home costs $120,000 the allowable credit would be $8,000
Eligible PropertyAny single family residence (including condos) that will be used as a primary residence
RefundableReduces income tax liability for the year of purchase. Claimed on tax return for that tax year.
Individuals should consult a professional tax advisor for exact tax calculations.
Examples:
  • If an individual's actual tax liability was $5,000, then after the tax credit is applied, the purchaser would receive a total refund of $2,500. The refundable amount is the difference between the $8,000 tax credit and the amount of one's tax liability.
  • If an individual's actual tax refund was $2,000, then after the tax credit is applied the purchaser would receive a total refund of $10,000.
Income LimitIndividuals whose Form 1040 filing status is single (or head of household) are eligible for the tax credit if their income is no more than $75,000. Individuals who file a joint return may have no more than $150,000 in income. Individuals with incomes between $75,001 and $94,999 (single) or $150,001 and $169,999 (joint returns) are eligible for a partial tax credit. Individuals with incomes greater than $95,000 (single) or $170,000 (joint return) are not eligible for this tax credit.
First Time Homebuyer OnlyPuchaser (and purchaser's spouse) may not have owned a principal residence in three years previous to purchase. Not valid with PHFA and NJHMFA funded loans.
RecaptureRepayment is due if home is sold within the first three years
Effective DatePurchases on or after January 1, 2009 until November 30, 2009

Again, when we can be of further assistance or answer any questions, please do not hesitate to contact us.

| Powered by Intention Marketing | Photography by Damyon Verbo