There are some perks for home buyers in the new Federal Stimulus package signed by President Obama a few days ago. Details are still a bit sketchy however in broad outline here are some basics that may help you in your home purchase planning.
What is it? A Federal income tax credit applicable directly against your tax liability not subject to future payback, unless home is sold within 3 years. (This “no-payback” provision is different from last year’s tax credit which must be paid back over 15 years starting two years after purchase.)
How much is it? 10% of the home purchase price up to an $8,000 credit.
Who qualifies for it? First-time home buyers buying a principal residence. (Buyers who have not owned a home for 3 years qualify as first-time homebuyers.) Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
When is qualifying period? Home purchases made from January 1, 2009 to December 1, 2009 qualify for this benefit.
This information has been gathered from a variety of sources and I believe it to be accurate. However, in the fullness of time there will be other variables and interpretive nuances coming to light. Be smart. Use this information for planning purposes but before committing actual financial resources consult a competent tax professional for details about how this program will impact your tax liability.
More information may be found here and here.
