The clock is ticking on the $8,000 tax credit for Mobile Eastern Shore first-time home buyers. The expiration date of December 1, 2009 seems like a long time off now, but it will be here before you know it and the home buying process takes time. Here are some important facts to remember about the tax credit:
- It is a tax credit to home buyers, not a loan as in last year’s program;
- It is only for first time home buyers, defined as someone who has not had an ownership interest in a principle residence in the 3 year period prior to the date of the 2009 purchase;
- The buyer must remain in the home for a minimum of 3 years;
- It is applicable to purchases between January 1, 2009 and December 1, 2009; and
- Full credit is available to those with adjusted gross income of $75,000 or less ($150,000 for married filing jointly). The credit is phased out entirely for those with adjusted gross income over $95,000 ($170,000 for married filing jointly).
If you bought a home last year under the old $7,500 tax credit rules, those rules still apply to your 2008 home purchase.
If you purchased a home after January 1, 2009, or are thinking of buying a Mobile Eastern Shore home this year and want to learn more about the $8,000 tax credit, give me a call or visit JudySells.com.