Dean Schifflerof Burnet Home Loans sent out a handy chart to the agents in our company today. It really helped clear up the mud around the first time home buyer tax credit offered in the economic stimulus package.
Here, in essence, is the tax credit defined:
Amount of credit: Lesser of 10 percent of cost of property or $8000.
Eligible Property: All principal residences.
Income Limit: Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Credit phases out above those caps.
First-time Home Buyer Only: Defined as someone who has not owned a principal residence in the last three years.
Repayment: No repayment for purchases on or after January 1, 2009 and before December 1, 2009.
Recapture: If the home is sold within three years of purchase, the entire amount of credit is recaptured on the sale. This applies only to homes purchased in 2009.
Termination: December 1, 20009. In other words, you have to have closed on the property by this date.
Effective Date: All revisions are effective as of January 1, 2009.