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Ann Arbor Real Estate Blog

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Ann Arbor Area First Time Homebuyers Confused about the Tax Credit?

soldI received several calls this week with people wanting to know how to get the $8000.00 tax credit passed in the Obama Stimulus Plan. Many  were thinking they were being given the money to purchase a home. No, you are given a CREDIT on your tax liability.

Here are the rules to apply for the Tax Credit.

If you buy a home between January 1, 2009 & December 1, 2009, you can apply for  the tax credit of “up to” $ 8000. It is actually 10% of the purchase price or whichever is less.

The tax credit does not have to be repaid.

If you are single your income must be below or equal to $ 75,000 per year in salary. If you are a couple filing jointly you can not make over $150,000 per year.

You must purchase a home in the United States.

The home must be your primary residence not a vacation, or investment home.

This tax credit is ONLY for first time buyers.

You are not eligible to claim the credit is you are purchasing from a relative.

You can not have owned a home for 3 years prior to applying for the credit.

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3 thoughts on “Ann Arbor Area First Time Homebuyers Confused about the Tax Credit?

  1. i was so much in hope that after obama comming into power the things will change tremendously, but things havs not changed much, i live in uk but my daughter is in the united states and we talk almost every alternate day and she told me that the things in the US are not that good as the show on the television. i just bougt a house in uk.
    well I moved in a new neighborhood, i was searching for property to let in central london for quite some time and i accidentally found this amazing website no agents 24 with loads and loads of information about tips for tenants, tips for moving, hips. I really like my new house. i went out for some fresh air today early morning, although i am generally not the morning person type but i have to admit i really enjoyed it.


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