The American Recovery and Reinvestment Act originally had a $15,000 housing grant to anyone that bought a house this year. It was cut at the last minute and replaced with an $8,000 first-time home buyer tax credit. Buy a home, for the first time before December 1, 2009, and you can claim an $8,000 credit on your 2010 taxes.
This is a nice extension over the former “tax credit” which required repayment, however this does have a three-year ownership requirement if you claim the credit.
In addition, the bill reinstated the HUD purchase limits to their 2008 levels, after they were rolled-back to the 2007 mark earlier this year.
Home Buyer Tax Credit Cliff Notes:
- The tax credit is for first-time home buyers only
- The tax credit does not have to be repaid
- The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000
- The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009
- Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit
Frequently asked questions about the home buyer tax credit.
FIND YOUR 1st HOME IN PHILLY AND GET YOUR TAX CREDIT