The $8,000 tax credit is for first time homebuyers who purchase a home after January 1, 2009 and close before December 1, 2009.
A first time homebuyer is defined as an individual who has not owned a home in the last three years. For married joint filers, both people must meet the first time homebuyer test to qualify for the tax credit.
All single family, town homes, condos, etc. qualify if they are used the buyer’s principal residence.
There are incomes guidelines on the credit…you must have adjusted gross income up to $75,000 (or $150,000 for joint filers). The credit is phased down for those earning more and is not available for those with incomes above $95,000 (or $170,000 filing jointly).
This new tax credit does not have to be repaid if buyer stays in the home for at least three years. However, if home is sold before three years the entire amount of the tax credit is recaptured on the sale of the home.
Email us at piketteamrealtors@hotmail.com for more information. We recommend you discuss this with your tax advisor if other issues are at stake.