Congress Has Approved An $8,000 Tax Credit For Homebuyers. Search Over 2 Million Homes Now! Click Here to Search for Available Homes  |
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Q:
A: | How much is the credit?
The tax credit would be $8,000 or 10% of the purchase price, whichever is less.
| Q:
A: | What type of purchase is eligible?
Similar to the $7,500 tax credit included in the Housing and Economic Recovery Act of 2008, the $8,000 tax credit included in the 2009 economic stimulus plan is available for the purchase of a principal residence by first-time homebuyers.
| Q:
A: | Who qualifies for the first-time homebuyer credit?
According to the IRS, any taxpayer who has not owned a home during the 3 years prior to the date of purchase can qualify for the credit.
| Q:
A: | And I really don't have to repay the credit?
No. This is a change from the previous $7,500 tax credit. However, if the home is sold within three years of purchase, the credit will be reversed.
| Q:
A: | Are there income limitations on the tax credit?
The tax credit begins to phase out for individuals with adjusted gross income over $75,000 ($150,000 for joint filers).
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