Here is a quick reference guide for the 2009 Home Buyer Tax Credit. As part of the Stimulus Package, the home buyer tax credit has be extended and changed.

The changes include:

  1. Increase of the tax credit from $7,500 to $8,000
  2. No recapture after three years
  3. Includion of homes purchased with Mortgage Revenue Bonds (MRB) funds

A tax credit is different from a tax deduction. A tax credit is deducted from the amount of federal taxes owed by a taxpayers. A tax deduction reduces a filer’s adjusted gross income.

Here are the features of the 2009 Home Buyer Tax Credit

  • First Time Home Buyers (meaning no ownership in the last three years)
  • Any property in the US that will be your principal residence is eligible
  • No restrictions on sales price
  • Maximum credit caluculation is 10% of the purchase price up to $8,000
  • No repayment of the credit as long as the home is not sold within 3 years of the closing date
  • There is an income eligibility requirement - Max $75,000 for singles and $150,000 in income for married persons.
  • You must purchase the home between 12/31/08 and 12/1/09
  • You must be a US citizen
  • Not eligible if you live in the District of Columbia
  • If your taxes are lower than the credit you get a refund of the difference!

That’s it in a nutshell. It’s a great life and a great time to buy a home!

(c) Shannon Aldrich, 2009