Not Owned Your Home for the Past 3 Years? You’re a 1st Time Buyer!
Date: Wednesday March 11, 2009Posted in: real estate, Santa Clara County, Home buying, first time buyer, tax credit
Most likely you’ve heard about the First-Time Buyer Credit offered through the 2009 Economic Stimulus Package passed by Congress. But what you may not realize is that even if you owned a home previously, if you haven’t owned your primary residence within the past three years, you are considered a first-time buyer and may apply for the tax credit of $8000.
This tax credit is for $8000 or 10% of the purchase price, which ever is smaller. In Santa Clara County, chances are that you are not purchasing a residence for less than $80,000 and so will receive the full $8000 credit on your taxes. The home must be purchased between January 1, 2009 and December 1, 2009, so time is of the essence. This credit is unlike the 2008 first-time buyer credit in that it does not have to be repaid to the IRS.
Single taxpayers with modified adjusted gross incomes (MAGI) up to $75,000 will receive the full credit. The credit is reduced proportionally with a MAGI up to $95,000. Any single taxpayer earning over that will not receive the credit. Married couples with MAGI up to $150,000 will receive the full credit. In this case the credit is reduced proportionally with a MAGI up to $170,000. Married couples earning over $170,000 will not receive the tax credit.
For more information, the National Association of Home Builders provides an informative site: http://www.federalhousingtaxcredit.com/2009/glance.php
Please consult your tax advisor for more information regarding the tax implications of buying real estate.
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