Here are some important changes to the First Time Home Buyers Tax Credit Bill, which could benefit those of you who are considering buying a home in the coming months.
The modified Home Buyers Tax Credit states that first- time home buyers and those who have not owned a home for the last 3 years, will be eligible for an $8000 tax credit. The home must be the buyer's principal residence, and it must be purchased on or after January 1, 2009 and before December 1, 2009. The most exciting change to this First Time Home Buyers Tax Credit Bill is that this tax credit does not need to be repaid. The credit will be claimed on a tax return to reduce the purchaser's income tax liability, and the unused amount will be refunded as a check to the purchaser. This tax credit is for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). It phases out above those caps.