Resources: First-Time Home Buyer Tax Credit

As part of the economic stimulus package to revitalize the housing industry, Congress passed legislation granting an $8,000 tax credit to first-time home buyers. To qualify, a "first-time home buyer" must not have owned a residence during the past three years and must purchase between January 1, 2009 and December 1, 2009. The credit can be used on primary residences, including single-family homes, condos, townhomes and co-ops.

First-time home buyers

The credit is determined by two factors—the price of the home and the buyer’s income. The credit is equal to 10% of the purchase price of the home, up to $8,000. When considering income, the maximum credit of $8,000 is  available for incomes up to $75,000 for singles  and $150,000 for married couples. The credit will be reduced for incomes ranging between $75,000 and $95,000 for single buyers and $150,000 and $170,000 for couples. The credit can be calculated on the IRS Tax Form 5405 (PDF).

Other resources:

IRS: First-Time Home Buyer Tax Information>>
IRS Tax Form 5405: First-Time Homebuyer Credit>> (PDF)
NAR: "The Basics—2009 First-Time Home Buyer Tax Credit>>
FAR Flyer: What you should know about the $8k tax credit>> (PDF)

About MFRMLS: My Florida Regional Multiple Listing Service services 15 Realtor associations in 10 counties and has approximately 30,000 members. Homebuyers can log on to to find the most up‐to‐date information on home listings in central and southwest Florida, including open houses, short sales, pre‐foreclosures and foreclosures.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: