First Time Home Buyers $8000 Tax Credit

Not only are prices great and mortgage rates low, but there is also an $8,000 Tax Credit for First Time Home Buyers which equates to now is a great time to buy a home!

So what defines a First Time Home Buyer? The IRS website states that a first time home buyer is anyone that has not owned a home in the past 3 years prior to the purchase.

This tax credit is for the purchase of a primary residence (you must live in the home for at least 3 years or you have to pay back the credit) and the home purchase must close between January 1, 2009 through November 30, 2009. The tax credit is equal to 10% of the purchase price up to a maximum of $8000.

The best part of this tax credit is it does not have to be paid back.

Are there income limitations? Yes. The income limit is $75,000 for single taxpayers and $150,000 for married taxpayers.