One question that we have received at our Joe Manausa Real Estate office in Tallahassee quite often recently pertains to the First Time Homebuyer Tax Credit. People want to know what it is, where is the information on the program, who qualifies (meaning even if you have owned a home previously you might qualify), and what resources exist for people to find out more.
Today's post in the Tallahassee Real Estate Blog is a one-stop resource for the First Time Homebuyers Tax Credit. You will be able to understand the basic program by reading this, and you can also download several fact-filled documents on the tax credit.
What is the First-Time Homebuyer Tax Credit?
This tax credit is a dollar-for-dollar reduction in what the taxpayer owes in income taxes. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009 and the taxpayer must meet the annual income requirements. For the purposes of tax credit, the purchase date is the date when closing occurs.
How much is the new Homebuyer Tax Credit?
The tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $8,000. For many first-time homebuyers, this means the credit will equal $8,000.
Who is eligible for the tax credit?
A "first-time homebuyer" is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
Does the tax credit need to be repaid?
No, homebuyers will not be required to repay the credit to the government, as long as the purchase is made between January 1, 2009 and December 1, 2009. This tax credit is designed to help make home buying possible for first-time buyers. Consulting with a tax professional is recommended before the tax credit is used.
More Information And Resources About The First Time Homebuyer Tax Credit
- First Time Homebuyer Tax Credit Frequently Asked Questions
- Profile Of A First Time Homebuyer
- First Time Homebuyer Quick Facts Sheet
- Modifications To The First Time Home Buyer Tax Credit
- First Article on the First Time Homebuyer Tax Credit
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Joe Manausa, MBA is a 26 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.