Mobile Eastern Shore Home Buyers Get $8000 Tax Credit

Mobile Eastern Shore home buyers will benefit this year from the “American Recovery and Reinvestment Act of 2009,” which was signed into law last week by President Obama provides an $8000 tax credit for first-time home buyers.

Important Provisions:  

  1. It is a tax credit to home buyers, not a loan as in last year’s program;
  2. 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;
  3. The buyer must remain in the home for a minimum of 3 years;
  4. It is applicable to purchases between January 1, 2009 and December 1, 2009; and
  5. 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.

Issues you will want to consider are the definition of adjusted gross income, how to apply for the credit, what happens if your total tax liability is less than the credit, definition of ‘principle residence’, and other issues. I am happy to advise you as to how you can benefit from the tax credit.

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