$8,000 First-time Home Buyer Tax Credit

Last year the government passed a first-time home buyer tax credit that allowed eligible participants to receive $7,500. The big catch was that this had to be paid back at 0% interest over 15 years. The 2009 version of this tax credit is much improved and should cause many buyers to jump off the fence prior to November. Who wouldn't want $8,000 to pay down their loan or furnish their new place with furniture? This should be a big incentive to Seattle home buyers who are already enjoying lower prices and interest rates! Below are the basics of how the tax credit works.

• Effective dates: applies to purchases from January 2009-November 2009


• Tax Credit available up to $8,000 for first-time home buyers only.


• A first-time home buyer is a buyer who has not owned a home during the last 3 years. (Joint purchase applies to both parties)


• Eligible Property: Any residence that will be used as a principal residence. (Including single family, attached townhouses, condos, manufactured homes and houseboats) No second homes or investment properties.


• Income Limits: Adjusted gross income for single filers with incomes below $75,000 and couples with incomes below $150,000.


• Estimated partial credit for single filers with income up to $90,000 and couples up to $170,000. This is a general example. Please consult a tax advisor for stipulations on the partial credit.


• Tax Credit vs. Tax Deduction: the true benefit is a dollar for dollar tax reduction, rather than a reduction in liability. If you owe $8,000 in income taxes and you qualify for the tax credit, you owe nothing.


• Tax credit only needs to be repaid if home sold within the first 3 years.


• Purchases closed in 2008 will not be eligible for the 2009 revision of this tax credit.

Take advantage of the $8,000 tax credit today!