FIRST TIME HOME BUYERS:

Tax Credit Provides Outstanding Opportunity for Home Buyers

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

Video & Buyer Resources

Video Interview: Tax Economist Answers Questions About the Home Buyer Credit
Rob Dietz, Ph.D., director of tax issues for the National Association of Home Builders, discusses the $8,000 first-time home buyer tax credit in this videotaped interview. An audio file of this video is available for download here (right click to save file to your computer).

A glance at the $8,000 Home Buyer Tax Credit The information herein pertains to the American Recovery and Reinvestment Act of 2009. The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase. The tax credit does not have to be repaid. The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

In February, the economic stimulus package known as the “American Recovery and Reinvestment Act of 2009” was signed into law by President Obama. The Act includes provisions intended to revitalize the housing market, while the U.S. Treasury Department’s plan to help mitigate foreclosures and encourage new lending also targets a housing recovery. With the information available here, Florida Realtors® have the tools they need to help potential homebuyers and sellers benefit from these new programs.

• What you should know about the $8K tax credit (PDF)
• What you should know about the FHA downpayment plan (PDF)
• 8,000 reasons to buy your first home now (PDF)   
  
• 2009 First-time Homebuyer Tax Credit IRS Form 5405 (PDF)

IRS Form	The IRS requires Form 5405 (First Time Homebuyer Credit) to be filed with your Federal Income Tax 1040 form to claim the First-Time Home Buyer Tax Credit. The same form is for those taking the 2008 or 2009 version, it can be used toward your 2008 or 2009 taxes. If you've already filed your 2008 taxes, use IRS Form 1040X along with Form 5405 to Amend your 2008 tax return. For your amendment questions and how to use Form 1040X, see Instructions for Form 1040X. If you have already received the $7,500 First Time Home Buyer Tax Credit for a home purchase in 2009, use the same forms to receive additional $500.

First step is to get qualified for a mortgage if you are not buying cash, and then ask Karina Leal to help you with your home search! Ready to begin? Contact Karina Leal at (561) 350-3503, email her now or start your property search through our site:

DISCLOSURE: THE INFORMATION HERE IN IS BELIEVED TO BE ACCURATE, BASED ON RESEARCHED INFORMATION AS OF JULY 17, 2009. PLEASE CHECK WITH YOUR TAX ADVISOR IF YOU HAVE ANY QUESTIONS ABOUT USING THIS PROVISION.