Included in the Stimulus package being signed by President Obama is a tax credit for first-time homebuyers.
First-time homebuyers are eligible for a refundable tax credit equal to 10 percent of the purchase price of their home, up to $8,000, if they made the purchase after Jan. 1, 2009, but before Dec. 1, 2009.
Unlike a similar credit that Congress provided last year, you don’t have to pay this one back over 15 years. The new credit, however, does phase out for individuals with incomes over $75,000 or married couples with incomes over $150,000 who file their taxes jointly. Also, you forfeit the credit if you sell the house within three years.
This credit is refundable, meaning that even if you have no federal income tax liability, you will still get the money.
If you are buying a home this year, be sure to check with your tax adviser to see how this credit will affect you. If you don’t have a good tax adviser, you can call Carlos Castro at SmarTax and Accounting: 303-693-5085 or firstname.lastname@example.org.