Ms. Ty, Home Buyer in Philadelphia County,...

What does the $8,000 tax credit mean to a first time buyer?

Asked by Ms. Ty, Philadelphia County, PA Fri Jun 12, 2009

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Hi, Ms. Ty!

All of the answers are correct. I would like to add that in order to receive the $8,000 tax credit, the home MUST be settled by December 1st. This means that the home should be under agreement no later that September 30th, allowing 60 days for inspections, mortgage commitments, etc. This means that time is running out. As of today, July 23rd, there are only 69 days left to find a home and get one under contract.

What does the tax credit mean? It means that it will directly reduce the total amount of taxes you owe. Let's say when you file you tax return you owe the IRS $2,000. Using the tax credit of $8,000 your tax liablility will be lowered, which means you will receive a refund of $6,000.

In order to receive the tax credit, you need to find out if you qualify. First time home buyers who purchase a principal residence on April 9, 2008 and before December 1st, 2009 are eligible. If you, and your spouse if you are married, have not owned your principal residence for a 3 year period before your purchase, and you have not taken advantage of the first time home buyers credit, you qualify as a first time home buyer. And, you do not need to repay the credit. If you have more specific questions about the implications of the tax credit, consult a tax professional.

Brigita McKelvie, REALTOR, e-PRO, GRI
Keller Williams Real Estate, Bethlehem, PA
Office: 610-867-8888 Direct: 610-393-9424
Web: http://www.RuralAnd
0 votes Thank Flag Link Thu Jul 23, 2009
All the agents hit it on the nose. But there are also some mortgage companies that will let you apply a portion of this credit for you closing costs. Check with you lender.

Kem Bailey Smith
Keller Williams Mainline Realty
Cell- 267-972-3879
0 votes Thank Flag Link Fri Jun 12, 2009
Hello again Ms. Ty,

I also have written a few highly publicized articles on the credit on my blog.

Let me know if it helps you.

Renee Porsia
Associate Broker
(215) 669-0589 Direct
(215) 358-1100 Office ask for Renee
0 votes Thank Flag Link Fri Jun 12, 2009
2009 Homebuyer Tax Credit

A $8,000 tax credit will be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not have to be repaid. Most of the details of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

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If you have any additional questions, feel free to contact me at:

Adrian Huntington
Coldwell Banker Coon&McCreary Realtors
1954 Contra Costa Blvd. Pleasant Hil, CA 94523
3711 Lone Tree Way Antioch, CA 94509
925-688-1500 Office 925-212-6456 Direct
California DRE License #01804851
0 votes Thank Flag Link Fri Jun 12, 2009
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