First Time homebuyers can now take advantage of an expanded tax break, as a provision under the American Recovery & Reinvestment Act of 2009. Up to $8,000 is available to qualified taxpayers who buy a home by 11/30/2009 & claim up to $8,000 on their 2009 tax returns.
Unlike the prior first-time homebuyer credit, this is money individuals do not need to pay back. The internal Revenue Service has posted (on IRS.gov) a revised version of the Form 5405 (click herefor Form 5405), First Time Homebuyer Credit to incorporate provisions from the American Recovery & Reinvestment Act.
A brief summary of the tax credit provision is outlined below:
How Much is the Tax Credit?Up to 10% of the Purchase price or up to $8,000 max.
Who is Eligible?1st Time Buyers purchasing a principal residences only.
Income Limits?Max income for Individual is $75,000; Married Couple $150,000.
Expiration Date? Eligible Buyers must close 11/30/2009.
Is Repayment required?No as long as the property is not sold or rented in first 3 years.