home buyers tax credit

What is the tax credit in the stimulus pkg?

American Recovery and Reinvestment Act of 2009

What: Plain and simple it’s $8,000 or 10% of the property’s value (whichever is the lesser).

Who: First time home buyers who have not owned a property in the last 3 years.

When: Homes bought between January 1, 2009 and December 1, 2009.

How: IRS form 5405 form here. Recipients must not make more than $75,000 per individual or $150,000 jointly (adjusted gross income). The credit does NOT have to be repaid if purchase is between January 1, 2009 and December 1, 2009.

This is different than last year’s $7,500 first time home buyer tax credit, where homeowners who bought in 2008 that receive the credit must pay it back over 15 years.