HURRY! This credit expires Dec. 1, 2009!

For more information on the first-time home buyers credit:

Federal Housing Tax Credit

IRS: Housing Credit

Things to Know

First Time Home Buyer's Credit...

What makes a first time home buyer? You would be surprised, it does not have to be your first home, you just cannot have owned a personal residence for the previous 3 years.  This also applies to your spouse if you are purchasing a home together.  

For those of you who would be considered a first time home buyer, you are eligible to receive a credit of 10% of the purchase price of your new home with a maximum at $8,000.  Pretty nice deal!

So how do you get this credit? One way is to claim a credit on your 2009 tax return.  Also, you can amend your 2008 tax return to claim a credit for a home purchased in 2009.  And then receive the credit now instead of with your 2009 return.  The last way to obtain the credit is that select lenders and the government are issuing interest free loans up the amount of your credit for the down payment on the home.  For  more details on short-term loans for this purpose go to US News- The Home Front.
Nitty Gritty Details....

Those who took the credit in 2008 for 2007 purchases do have to repay their credit over 15 years.

There is an income limit for the credit, $75,000 for single filers and $150,000 for married filing joint. 

The credit is refundable, so if your tax liability is less than the credit, you will receive a refund.

If the home is sold within 3 years from purchase, the credit will have to be repaid.   Otherwise, it is not required to be repaid. 
Take advantage of these significant credits and make sure to stay tuned to our blog where we will be posting many more credit and tax-related issues throughout the year.

Remember, we are here year round to answer your questions! Give us a call or send an email, we're happy to help you!

From all of us at
Maco & Associates, LLC
Teri, Adam, and Hannah