In an effort to stimulate the economy, Congress is providing a new tax credit of up to $8,000 to first-time home buyers. A first-time home buyer is anyone who hasn’t owned a home within the last three years prior to buying a home.

You may qualify for the tax credit if you are purchasing a single family residence, condo, or townhouse between January 1, 2009 and December 1, 2009. As a first time home buyer, you will receive a tax credit of 10% of the purchase price but no more than $8,000. This credit does not need to be repaid if the home buyer lives in the home for 3 years or more. To qualify for the full credit, single buyers must make no more than $75,000 or $150,000 for married couples.

This credit will be claimed on the home buyers tax return to reduce the income tax liability. If any amount of the credit is unused, then the unused amount will be refunded by check to the home buyer.

For more information about the First-Time Home Buyer Tax Credit, please contact your Tax Professional.

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Source: National Association of Home Builders (NAHB) NAHB is providing the information on this web site for general guidance only. The information on this site does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information on this web site is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.