338 North Main Street
Brewer, ME 04412
ph 207.942.2024
207.989.1189
fax 207.990.3031
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Begin your journey to home ownership - With the help of "Uncle Sam" First Time Home Buyer Tax Credit
(Modified by the American Recovery and Reinvestment Act, February, 2009)
Have you been thinking about buying but have been unsure of the right time? With the recent modification of the First Time Home Buyer Tax Credit by the American Recovery and Reinvestment Act, now may be your ideal window of opportunity to buy the home of your dreams.
What is the First Time Home Buyer Credit?
On July 30, 2008, a major housing bill (H.R. 3221) was signed into law. The law created a new, temporary tax credit equal to ten percent of the qualified home purchase price, with a maximum credit of $7,500. In February 2009, with the passage of The American Recovery and Reinvestment Act the maximum credit is increased to $8,000 and the repayment of the credit is no longer required for home purchases on or after January 1, 2009 and before December 1, 2009.
Who is eligible?
A first time home buyer is defined as a buyer who is a U.S. citizen who files a tax return and who has not owned a principal residence in the previous 3 years. The eligible property includes any single family home that can be used as a principal residence including a condominium. To qualify the buyer must close on the sale of the home between January 1, 2009 and before December 1, 2009.
Are there income limits?
Yes. Individuals whose tax filing status is Single (or Head of Household) are eligible for the full credit if their income is no more than $75,000. Individuals who file a Joint return may have income of no more than $150,000. A partial credit is available for income above the limits and is completely phased out when income reaches $95,000 for individuals ($170,000 joint return).
When will I receive the credit?
The credit reduces your income tax liability for the year in which you purchase the home. First time home buyers who close on their new home on or after January 1, 2009 and before December 1, 2009 will receive the tax credit when they file their 2009 tax return in 2010. The credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. In such instances, the taxpayer will receive a refund check from the government.
How is the tax credit repaid?
No, with the passage of The American Recovery and Reinvestment Act there is no repayment for purchases on or after January 1, 2009 and before December 1, 2009.
What if I sell the home?
If the homeowner sells the home within three years of purchase, the entire amount of the credit would be recaptured at the time of the home sale. This applies only to homes purchased in 2009.
To find out how these tips can work for you, call us at 207.942.2024. We're here to help!
Looking for information?
Try these useful websites. We hope they help!
Accounting
Maine Society of Certified Public Accountants
American Institute of Certified Public Accountants
Financial Accounting Foundation
Taxes
Maine Revenue Services
Internal Revenue Service
IRS Forms
Business Info
Federal Reserve System
General Accounting Office
Yahoo! Finance
Loans
Small Business Administration
Finance Authority of Maine
Loan Amortization Calculator
Investments
Investor Guide
Retirement Income Calculator
Statistics
Bureau of Labor Statistics
U.S. Census Bureau
Fedstats
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