Get up to $8000 Tax Credit for First-Time Homebuyers

In an effort to stimulate home sales, the government has passed a new law that could put up to $8,000 in your pocket via a first-time homebuyer tax credit that does not have to be repaid.

So, how do you know if you qualify?

1. You need to be a "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.
2. To be eligible, you must be a U.S. citizen who files taxes
3. There is an adjusted gross income limit of $75,000 a year for individuals and $150,000 a year for joint filers. Those who make more may qualify for a partial credit.
4. You must buy a home between Jan. 1 and Dec. 1 of 2009 and close escrow during these dates.
5. The property you are purchasing must be your primary residence.

To apply for the credit, you would need to use IRS Tax Form 5450 to claim the first-time homebuyer tax credit. If you would like to purchase a home and take advantage of this tax credit, contact me at (239) 404-5068 for a free consultation.