$8,000 Tax Credit for First-Time Home Buyers in 2009

Buy this year and you can receive a tax credit up to $8,000!

A new law could put up to $8,000 in your pocket via a first-time homebuyer tax credit that does not have to be repaid.

But you must purchase a property this year to qualify.

FAQs:

When do I need to purchase to qualify?

If you buy a home between Jan. 1 and Dec. 1 this year and close escrow during these dates, you will qualify for a tax credit up to $8,000 - as long as it is your primary residence and you meet the simple requirements.

How does the law define "first-time homebuyer"?

The law defines "first-time homebuyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase.

What are other requirements to qualify?

All U.S. citizens who file taxes are eligible to participate. An income limit of $75,000 a year for individuals and $150,000 a year for joint filers also applies.

How do I apply for the credit?

Taxpayers should use IRS Tax Form 5450 to claim the first-time homebuyer tax credit.

Does the credit have to be repaid?

No. Unlike a similar tax credit passed in 2008, this $8,000 tax credit does not have to be repaid to the IRS.

(RealtyTrac.com email blast April 7, 2009)