President Barack Obama signed the American Recovery and Reinvestment Act into law Tuesday, which is great news for first time home buyers. We’re sure that some of you may have questions as to how it will affect you, so we have listed here the highlights of the bill:
- The tax credit is equivalent to 10% of the purchase price of the home, capping at $8,000;
- The credit applies only to first time home buyers and the home must be used as your principal residence;
- A first time home buyer is defined as anyone who has not owned a principal residence within the last 3 years;
- The credit will not need to be paid back, as with the earlier $7,500 credit;
- The credit is applicable towards homes that are purchased on or after January 1 and before December 1, 2009;
- Income restrictions are as follows: a single person must have an adjusted gross income of $75,000 or less, while married buyers are limited to an adjusted gross income of $150,000 or less;
- You will need to live in the home as your primary residence for at least 3 years to be able to keep the credit;
- If you should sell the home prior to the end of the 3 year period, you will be required to return the credit;
- To receive the credit, you must claim it on your tax return for 2009.
To be sure, this is only a simple list of the important points of the bill. If you have any questions about the credit or if you would like to see how you can take advantage of this great opportunity, please give us a call at (203) 605-3873 or email us at email@example.com. We’re here to help!