July 13th, 2009 10:31 PM by Wendy Thomas
I am seeing a lot of buyers getting off of the fence and buying in this market. They are getting great prices on houses, but they're also taking advantage of the federal $8000 first time homebuyer tax credit. I would love to see more people take advantage of the tax credit, though, and wanted to clarify a couple of points for buyers:
In this situation, a first time homebuyer is considered someone who has not owned a home in the last 3 years-- you or your spouse.
If you purchase a house and close before November 30, 2009, you are eligible to receive the $8000 tax credit when you file your taxes next year; for example, say you normally get back $1000... Next year, you'll receive $9000 back! Great incentive!
This money does not have to be paid back AS LONG AS you remain in the house for at least 3 years. Should you move prior to that, you must pay the $8000 back in full.
Please contact your tax preparer with any more specific questions, but the bottom line is, if you are thinking of buying, now is the time! Don't let this great possibility pass you by!