First Time Home Buyer Tax Credit

I know this isn't any great place to see or something exciting to do in Pasadena, but this is very important info for the buyers out there who are thinking of purchasing. This program ends November 30, 2009 so if you are thinking of buying and qualify for this program now's the time to take advantage of it. Read on for more information....

Purchase a home now and take advantage of the new tax credit of up to $8,000.* A benefit that makes your new home more affordable.

A tax credit is available for first-time home buyers under the American Recover and Reinvestment Act of 2009. If you buy a home between January 1, 2009 and November 30, 2009, you may be eligible to receive a tax credit for 10% of the purchase price of your home - up to $8,000. Program highlights include:

• Any individual (and if married, their spouse) who has had no ownership interest in a home during the last three years is eligible



• Full credit for single taxpayers with incomes up to $75,000 ($150,000 on a joint return); partial credit for incomes up to $95,000 ($170,000 joint return)



• Applies to the purchase of a single-family home (including condos, town homes, etc.) that will be used as a principal residence



• Home buyers can reduce (or even eliminate) their income tax liability for the year of purchase by claiming the credit on their tax return*



• If the home is sold before 3 years, the first-time home buyer (who is now the seller) must pay the IRS the entire amount of the credit at closing

*certain eligibility criteria must be met. Home buyers should consult their tax advisor for further details.

I hope this helps some of you who are trying to determine the right time to buy - it's now! Rates are low, prices are good and combined with this tax credit - go shopping!