2022 Boise Idaho Real Estate Blog

$8,000 Tax Credit For First-Time Homebuyers

Main Boise Home Loans

I'll take a quick break from credit scoring on my Blog, and break down the main points of the new $8,000 tax credit for first-time homebuyers that President Obama signed into law this week.

It's true that the $15,000 home-buyer tax credit didn't make it into the Stimulus Package that President Barack Obama signed into law on Tuesday this week. However, the law does contain a smaller measure to help first-time homebuyers. Here are the main points of the new tax credit:

$8,000 for First-Time Homebuyers
The new tax credit in the stimulus package is equal to 10% of the purchase price of the home...capped at $8,000. It applies to first-time homebuyers and primary residences only, but unlike the earlier $7,500 tax credit, this one does not have to be repaid.

Who is a First-Time Homebuyer
A first-time homebuyer is someone who has not owned a primary residence for the last three years. If you own a vacation home or rental, but not a primary residence in the last three years, you would still qualify for the credit.

2009 Buyers Only
Only those who buy their home on or after January 1 and before December 1, 2009, are eligible for this credit.

Income Restrictions
This tax credit has income limits before the credit starts phasing out. Single buyers need to have Adjusted Gross Income of $75,000 or less, or $150,000 or less for married borrowers.

Buyers must own the home for a minimum of three years, or else they will have to return the credit to the government. There are some exceptions (ex: death or divorce), but consult your CPA or tax preparer on those.

These are definitely the main points in summary form; the actual law contains much more detail and information. Please consult your CPA or tax preparer with more specific questions.

Eric Leigh

Posted by Eric Leigh at 2/21/2009 3:06:00 PM

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