Although the first time home buyers tax credit was ammended from $15,000 to $8,000, it's still a nice chunk of change for those folks looking for their first home. Afterall some is better than none...or some that has to be repaid, like the last tax credit.
To give you a better understanding of the mechanics of the 09' tax credit, I've broken it down to the basics.
- First time Buyers that purchase a principal residence between January 1, 2009 and December 1, 2009 will be eligible for the full tax credit as long as your income fits in the following parameters.
- Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
- The tax credit is equal to 10 % of the home's purchase price, with a maximum credit of $8,000.
- The tax credit does not have to be repaid.
A first time buyer is defined by the program as a buyer that hasn't purchased or owned a principle residence in the last 3 years.
Here's a Video that explains it all.