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Courtney Erwin's Blog

By Courtney Koranda Erwin | Agent in 92127

What is the 2009 First Time Home Buyer Tax Credit and Who Qulaifies?

What is the 2009 Tax Credit?

The 2009 tax credit is an $8000 refundable tax credit  - refundable meaning that if your total tax liability is less than $8000 for the entire year, the IRS will mail you a refund check for the difference.   To qualify for the 2009 tax credit, you must be a first time home buyer. The definition of a first time home buyer is one that has not owned another primary residence  at any time during the THREE years prior to the date of purchase.  

Who cannot take the tax credit?  There are some restrictions to the tax credit.  Joint filers with a Modified Adjusted Gross Income of $170,000 and above and  single tax payers with a MAGI that exceeds $95,000 will not qualify.  In addition, if you buy your home from a close relative (spouse, parent, grandparent, child or grandchild).  Other restrictions are if you stop using your home as your main residence, sell your home before the end of three years or are a nonresident alien.

The tax credit is based on 10% of the purchase price or a maximum of $8000.  Home buyers today are taking advantage of low interest rates, discounted housing prices and this government tax credit.

Courtney K. Erwin, Realtor
Richard Realty Groups
(619) 992-4495
LIC #01441469

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