First time home buyers have new incentives to consider when purchasing real estate in 2009.
The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. Highlights of the plan include:
The tax credit is for first-time home buyers only.
The tax credit does not have to be repaid.
The tax credit is equal to 10% of the home’s purchase price up to a maximum of $8,000.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full credit.
The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
The recent stimulus plan made some modifications to the 2008 legislation, the most significant being that the credit would need to be repaid over 15 years, thus making it more of a no-interest loan. Not surprisingly, the measure had little impact on the market.
Additional details and FAQs are available at the Federal Housing Tax Credit site.
Posted by: Michael Sosnowski
Categories:
Maine Real Estate
Home Buying