$8000 Tax Credit for new home purchases explainedPosted by Bruce Wagg on Saturday, April 11th, 2009 at 10:50am.
I've been getting a lot of calls about the Governments First-Time home buyers credit. The newly passed legislation allows first-time buyers to claim a credit of up to $8,000, or 10% of the home's value, whichever is less, on their 2008 or 2009 taxes. This is a refundable tax credit meaning that you can actually have the money refunded to you even if you don't owe the full amount on your taxes.
The purchase must be made between Jan. 1, 2009 and Nov. 30, 2009 to qualify for the credit. Buyers must make less than $75,000 for individuals and $150,000 for couples. To qualify has a first time home buyer you cannot have purchased a home in the last three years. They must also live in the house for at least three years, or they will be obligated to pay back the credit.