First-Time Homebuyer $8,000 Tax Credit - Frequently Asked Questions
Wednesday, February 25, 2009 in Financing, Tips for Buyers 
Image Source: FreeFoto.com
How much is the tax credit?
The maximum credit amount is $8000 or 10 percent of the cost of the home.
What type of property is eligible?
Any single family residence (including condos, co-ops, townhouses) that will be used as a primary residence.
Is it a tax credit or tax deduction?
It is a tax credit. A credit reduces taxes owed after all standard deductions are calculated.
Is there a limit depending on income?
Yes. The full amount of credit is available for individuals with adjusted gross income of no more than $75,000 ($150,000 for a joint return.) It phases out above those caps ($95,000 and $170,000).
Who qualifies as a first-time buyer(s)?
Anyone who has not bought a primary residence in at least three years is considered a first-time buyer in this program.
Can the buyer receive the credit if they're financed with state or local bonds?
Yes.
Does the buyer have to repay the credit?
The buyer(s) must live in the home for at least three years. If less than three years, then the credit must be repaid.
When does the tax credit program begin?
January 1, 2009.
When does the tax credit program end?
November 30, 2009.
How do homebuyers claim the tax credit?
Participants claim the tax credit on their federal tax return. The homebuyer enters the $8000, or 10 percent of the home's cost, as a tax credit. This reduces any taxes owed or increases the refund to the homeowner.
Source: Pennsylvania Association of REALTORS
MovePittsburgh.net - Pittsburgh Real Estate - Andrew S. MacIntyre, Realtor - Achieve Realty
Reader Comments