Up to $8000 federal tax credit for first time home buyers if you qualify! Starting January 1st, 2009 buying your first home became even more attractive in addition to historically low low bank rates.
No repayment required unlike the previous tax credit, but home buyer must use the residence as a principal residence for at least three years or face recapture of the tax credit amount.
You can not have owned a home in the last three years prior to purchase. The tax credit amount equals 10 percent of the home's purchase price up to the maximum ceiling of $8000. This tax credit is a ticking clock and runs out December 1st, 2009. Now is the time to look for that new home. This tax credit is refundable and can be claimed even if the taxpayer has little or no federal income tax liability to offset. A refund check may be issued to the taxpayer for a portion or even all of the refundable tax credit (depending on the taxpayer's tax liability).
Restrictions on the first time home buyer's income apply though. Incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. (Partial credits may be available for taxpayers with incomes over these amounts and you should consult your tax adviser for details and guidelines subject to change.)
If you have not done and filed your 2008 tax return yet, the tax credit can be claimed if the home was purchased on or after January 1, 2009. Waiting to buy just got another reason to climb on the horse buying horse and gallop to your local Maine REALTOR and local community lender.
Maine REALTOR Andrew Mooers-Northern Maine Homes, Farms, Land, Waterfront For Sale
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