New Rules for the New Tax Credit

It's official. President Obama has signed a new $8,000 First Time Homebuyer Tax Credit into law.* If you haven't owned a home in 3 years — or never at all — this can guarantee you $8,000 off your taxes. Here's what you need to know about this historic move:

Limited Time Offer With Few Limitations

You must close on a new home no later than November 30, 2009, and make $150,000 or less if filing as a couple ($75,000 or less if filing single). The credit has to be repaid over time if you sell the home within 3 years of closing. Other than that, qualify for a loan and the full $8,000 credit is yours.

$8,000 Guaranteed No Matter What You Owe

A tax credit directly reduces the taxes you owe for the entire year, including what you’ve paid in. Under the new law you're guaranteed $8,000 off your taxes. If, for example, you’ve paid $6,000 and owe nothing else, you’d get an $8,000 tax refund. If you owe more, you're still guaranteed $8,000 credited against that.

You Could Claim The Credit For 2008

The tax credit applies in the year it's claimed. Close on a new home before you file your 2008 taxes, and you can claim it on your 2008 return. Or, you can choose to claim it for 2009.

Click to learn more: Federal Housing Tax Credit


Call Cherith Hibbs at 615-476-3600 with Farmington Financial Group for more information!