30 Apr 2009

Cash Reward For Buying a Home in 2009: $8,000 IRS Tax Credit

$8,000 IRS Tax Credit

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the First Time Buyer Tax Credit passed in 2008, this First Time Buyer Tax Credit does not have to be repaid. A tax credit is not an income tax deduction. It is a reduction in income taxes owed.

$8,000 Home Buyer Tax Credit at a Glance:
* The tax credit is for first-time home buyers only.
* The tax credit does not have to be repaid.
* The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
* The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
* Single taxpayers with incomes up to $75,000 and married couples with incomes up to$150,000 qualify for the full tax credit.

For a qualified first time buyer, this tax credit can be compared to receiving a cash reward for buying a home. The cash reward is received when filing the 2009 income tax return. Most first time buyers utilize most all of their savings when purchasing a home. Wouldn’t it be advantageous to have $8,000 to replenish the savings account after the home purchase, have the money available to replace the older, less efficient furnace in the home purchased or replace the exterior siding? Perhaps paying down the outstanding mortgage balance, and saving even more money over the term of the mortgage? There are numerous options and opportunities this tax credit provides.

Mortgage interest rates are historic lows. Most areas have experienced an adjustment in home values. Uncle Sam has decided to give qualified first time buyers a cash reward for purchasing a home! If purchasing a home is something you are considering, explore all the available options whether you are looking to live in Iselin, New Jersey or any other city or state.

For more detailed information on the $8,000 First Time Buyer Credit!

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