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Archive for September, 2009

How do I qualify for the $8,000 First-Time Homebuyer Credit?

Time’s running out to buy a home and collect $8,000!

What is the first-time homebuyer credit?

The First-Time Homebuyer Credit was enacted as part of the Housing and Economic Recovery Act of 2008. If you purchased a home in 2008, you must repay the credit over a 15-year period. However, if you purchase a home in 2009, the credit does not have to be repaid, as long as you remain in the home as your principal residence for 3 years.

How do I qualify?

1. You must be a first-time homebuyer which means you have not owned a principle residence during the past 3 years.
2. You must purchase and close on a home prior to December 1, 2009.
3. You must make less than $75,000 per year for individuals, and $150,000 for couples to receive the full credit.

How much is the credit?

For homes purchased in 2009, the credit is 10% of the home’s value, or a maximum of $8,000.

How do I apply for the credit?

You must file an IRS Form 5405 with your 2009 tax return.

What if I don’t owe taxes. Can I still get the refund?

Yes. For example, if you owe $4,000 in taxes, and you are eligible for the full credit of $8,000, then your refund would be $4,000.

 More questions, feel free to contact me.