First Time Home Buyer Tax Credit Available for 2008 or 2009!

The IRS tax credit for first time home buyers is available on for 2008 or 2009 tax years, the Internal Revenue Service announced. Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately. The tax credit is part of the stimulus bill which also included raising the conforming loan limits. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately. The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers. For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did
not own any other main home. Last year’s buyers can claim a tax credit of up to $7500, but that “credit” must be paid off over a 15 year period. Still with the mortgage interest deduction, financial planners say the tax credit was an incentive to buy. While national existing homes sales were down in much of the country in January, Northern Virginia sales rose 39%. Also, Forbes magazine recently rated Washington as the 7th best housing market in the country.

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