I just bought a home in IRVINE. Do I qualify for the FIRST TIME homebuyer TAX CREDITS?

by Robert Mack on August 11, 2009

in Irvine Real Estate

It amazes me at how many first time buyers still don’t know about the federal tax credit, so I thought I would take this opportunity to write about it, in hopes that someone will come across this post and benefit from it.  There are a lot of rumors regarding this credit, so I want to go over who qualifies for it and what the requirements are. 

The tax credit is a federal tax credit which is either 10% of the purchase price of the home, and not to exceed $8,000. The beauty of this tax credit is that regardless of where you are purchasing a home in IRVINE, 10% of the purchase price exceeds the $8,000; therefore, you will be able to take full advantage of the entire amount! 

Requirements

–          Principle Residence – The property purchased must be a taxpayer’s principle residence which the tax payer lives most of the time.

–          Type of property – House, Condominium, townhome, manufactured home, apartment cooperative, houseboat, house trailer, or other types of property located in the U.S. will qualify.

–          First time home buyer – The buyer and buyer’s spouse (if any) must not have owned a home within 3 years of the date of purchase to be considered a first time home buyer.

–          Unoccupied Property – Property does not have to be new or unoccupied.  May have been lived in previously

–          Minimum Occupancy requirement – The property must be the purchasers principle residence for at least 36 months (3 years), otherwise credit must be repaid.

–          Income restrictions – Adjusted gross income must be $75,000 or less ($150,000 for joint filers)

–          Date of Purchase – Home must be purchased and escrow to close between January 1, 2009 to November 30, 2009.

–          Refundable – Any amount of the credit not used to reduce taxes owed may be added to taxpayer’s tax refund check

–          Repayment – The buyer does not need to repay tax credit as long as he/she owns and occupies the property for a period of at least 36 months. 

For more detailed information on the first time home buyers federal tax credit and to learn more about the California $10,000 tax credit CLICK HERE!

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Post by Robert Mack

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Sam August 13, 2009 at 3:21 am

I though the tax credit was $7000…
I’ll take the $8000 any time. Thanks for the scoop.

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