| First-Time Homebuyers
Individuals and couples purchasing their first home for between 04/09/08 and 06/30/09 are allowed a refundable tax credit equal to the lesser of $7,500 ($3,750 for married filing separately) or 10 percent of the home's purchase price. The credit phases out between Adjusted Gross Income of $75,000-$95,000 ($150,000-$170,000 for married filing jointly). The credit must be repaid ratably over 15 years, with no interest.
Special rules apply if the home is sold or ceases to qualify as a principal residence before the end of the 15 year repayment period on in the case of divorce, death or involuntary conversion.
Taxpayers can elect to claim the credit for homes purchased in 2009 (before 07/01/09) on their 2008 income tax returns.
Back to Tax Law Changes List - Email This Page
|
