First time home buyer tax credit

Buy a home and you get a tax break! As part of the Housing and Economic Recovery Act of 2008, a First time Homebuyer Tax Credit is now available. But this special tax break ends in mid‐2009. A homebuyer tax credit has been available for first‐time homebuyers in Washington, D.C. for many years, and now first‐time homebuyers nationwide can take advantage of a similar benefit.
Am I Eligible?
First‐time homebuyers who purchase a principle residence on April 9, 2008 and before July 1, 2009 are eligible. If you (and your spouse, if married) have not owned your principle residence for a 3‐year period before your purchase, and you have never taken advantage of the DC first‐time homebuyer credit, you qualify as a first‐time homebuyer.
How does it work?
Like all tax credits, it will directly reduce the total amount of taxes you owe. When you file your taxes, for the year you purchased your home (2008 or 2009), you will be able to subtract the amount of the credit from your Federal income tax liability, increasing the size of your refund or reducing the amount you owe. For example, you file your ‘normal’ tax return and find that you owe $2,000 in taxes. With this credit, your tax liability could be lowered by $7,500—which means, you instead get a $5,500 tax REFUND check from IRS.
How big is the tax credit?
The tax credit is equal to 10% of the purchase price of your home up to $7,500. The full credit is
available for single individuals whose adjusted gross income is less than $75,000. If your adjusted gross income is greater than $75,000 and your home purchase qualifies you for the full credit, the credit phases out according to the dollar amount (or percentage if less than $7,500) in the chart below.

Want to take advantage of this? Let me help you find your first home. Call me today!
Stacie (617) 246-7900 x227
Stacie@BuyandSellBostonHomes.com