Picnic Point Undressed

Get your money!

Don’t forget your money when your purchasing your home in 2009! And there is more… email for more details: David@LendingOnRealEstate.com

Qualified buyers can claim a federal tax credit for 10 percent of the home’s purchase price, up to $8,000. This means someone who buys a home for $80,000 could qualify for the entire $8,000 credit. If the homebuyer owes $2,000 in federal income taxes, the credit could wipe out that tax liability, and the buyer would receive a $6,000 check from the government.

This credit is for first-time homebuyers. However, the definition of first-time homebuyer is anyone who has not owned a home in the past three years. The Internal Revenue Service announced on Feb. 25 people who buy homes before Dec. 1 can claim the credit, either on their 2008 return, if they have not yet filed it, in an amended return, if they have filed without the credit, or on their 2009 return, if they purchase later in the year.

This credit does not have to be repaid if the home remains the buyer’s main residence for three years after the purchase date. The amount of the credit phases out for people whose modified adjusted gross income is $75,000 and $95,000 for individuals or $150,000 to $170,000 for joint filers.

As always please consult your own personal tax advisor. If you do not have one we would be glad to recommend one.