We have been getting a lot of questions from you Boston real estate buyers about the $8,000 Home Buyers’ Tax Credit lately, and with all the changes that have been made to this credit in the last 18 months, it can be very confusing. Here is a quick overview:
1. The tax credit is for first time homebuyers only. For the tax credit program, the IRS defines a first-time homebuyer as someone hwo has not owned a principle residence during the three-year period prior to purchase.
2. The new tax credit does not have to be repaid.
3. The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
4. The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
5. Single taxpayers with incomes up to $75,000 and married couples up to $150,000 qualify for the full tax credit.