Tara Farnsworth Homes

847.301.3166
tara@tarafarnsworth.com

This is great news for first time home buyers!!

As Modified in the American Recovery and Reinvestment Act, these are the details....

 

1. Maximum amount of credit increased to $8000

 

2. All principle residences eligible

 

3. As the buyer, you receive the credit back with your tax return for  the year. (If they were to pay $3000-they now would get $5000-or any other combination that gets them the $8000)

 

4. Full amount of credit available to individuals with adjusted gross income of no more than $75,000 ($150,000 on joint return). Phases out above those caps ($95,000 and $170,000)

 

5.  Available to first-time home buyers and buyers who have not claimed home ownership on their income taxes for the previous 3 years(and purchasers spouse)

 

6. Purchasers can still use the credit even if they use state/local bond money for their purchase

 

7. No repayment necessary for purchases made between January 1st 2009 and December 1st 2009

 

8. You must keep this home for 3 years or you will need to repay the entire credit back on the following tax return!

 

9. The program ends on December 1st, 2009

 

10. The new rules apply to purchases made after January 1st, 2009