First-Time Homebuyers Tax Break

This year the IRS is allowing first-time home buyers up to $8000 in credit for a qualifying taxpayer. The home must be purchased between January 1, 2009 and December 1, 2009. If you were a first-time home buyer in 2008 you can qualify for $7,500 in credits. There are stipulations on how the credits are treated for taxpayers.

The first-time home buyer must maintain residency for a certain period of time to qualify. Home buyers can qualify for up to 10% of the home purchase price. It is not required that this “first-time home buyer” is purchasing their first house, they just have to meet certain requirements to qualify. Unlike the 2008 credit, the 2009 credit can be considered a true credit. The 2008 credit is a 15 year interest free loan, where as the 2009 credit does not need to be repaid if certain conditions are met.

So if you are considering purchasing a home in the near future try to plan accordingly to qualify for the credit. Talk to your accountant or realtor for more information to see if you qualify.