First-Time Homebuyer Tax Credit

President Obama will be traveling to Denver to sign his newly passed “American Recovery and Reinvestment Act of 2009″.

While there has been much said about the bill, the end result is yet to be seen. Changes to the First-Time Homebuyer Tax Credit are not significant. We already had a $7500 tax credit available from an earlier bill, but this one offers a non-payback plan. That is non-payback as long as the borrower owns the home for over 3 years.

In order to understand the benefits more clearly, I’m posting a chart, compliments of the National Association of REALTORS® here:

The good news for first-time home buyers who have purchased in 2009, this bill is retroactive. You too can qualify for the credit.

If you are a first-time home buyer or know of one, please pick up the phone and call me to see how you can take advantage of this tax credit and become a proud home owner soon!

NOTE: The President has also announced the NEXT big initiative will be focused on a finance and housing package. We are hoping to hear more about this as soon as this week.

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Gena Riede

Posted February 16, 2009 at 10:14 pm | Permalink

KK,
It will be interesting to hear what housing pkg. Obama will speak on…all eyes will be on Denver this week.
Kristal Kraft, Denver Realtor

Posted February 17, 2009 at 8:33 am | Permalink

Hopefully he will have something very powerful to say. I’m anxious for consumer confidence to return to America.
Dana

Posted February 18, 2009 at 7:59 am | Permalink

Do you know if the new tax credit for 1st time home buyers still has the stip that you cannot get credit if you buy home from close relative?
Kristal Kraft, Denver Realtor

Posted February 18, 2009 at 9:24 am | Permalink

Dana ~ Good question! I really don’t know but let me see if I can find out.
Kristal Kraft, Denver Realtor

Posted February 23, 2009 at 3:37 pm | Permalink

Dana ~ Just got confirmation on the answer to your question:
Form 5405 from the IRS specifically prohibits the 2008 or 2009 First Time Homebuyer Credit if you purchase the home from any family member…..

Hope this helps.
kk
Chris Lemmon

Posted March 21, 2009 at 12:53 pm | Permalink

I have a 2nd home I’m going to sell to my daughter & her husband…..will this sale be eligible for the $8K credit? They are first time buyers.
Kristal Kraft, Denver Realtor

Posted March 21, 2009 at 1:01 pm | Permalink

Chris, No, the credit does not apply to sales made between related parties.

Sorry!

2 Trackbacks

By Federal Tax Credit for Homebuyers $15,000! on February 15, 2009 at 8:46 pm

[...] UPDATE: The final approved bill is here. First-Time Homebuyers Tax Credit [...]
By Tax Credit for buying a home on September 26, 2009 at 3:20 pm

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