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September
16, 2009
Tips & Trends
From
Rory S. Coakley on some of the latest real estate news and
happenings.
The Basics: 2009 First-Time Home Buyer Tax
Credit
There’s
still time to take advantage of the First-Time Home Buyer
Tax Credit!
Who Qualifies?
First-time home buyers who purchase homes between January
1, 2009 and December 1, 2009.
To qualify as a “first-time home buyer” the purchaser or
his/her spouse may not have owned a residence during the
three years prior to the purchase.
Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied
to primary residences, including: single-family homes, condos,
townhomes, and co-ops.
How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000.
Each home buyer’s tax credit is determined by two factors:
The
price of the home—the credit is equal to 10% of the purchase
price of the home, up to $8,000.
The
buyer's income—single buyers with incomes up to $75,000
and married couples with incomes up to $150,000—may receive
the maximum tax credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She
Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The
credit decreases for buyers who earn between $75,000 and
$95,000 for single buyers and between $150,000 and $170,000
for home buyers filing jointly. The amount of the tax credit
decreases as his/her income approaches the maximum limit.
Home buyers earning more than the maximum qualifying income—over
$95,000 for singles and over $170,000 for couples are not
eligible for the credit.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if
he/she occupies the home for three years or more. However,
if the property is sold during the three-year period, the
credit will be recouped on the sale.
If
you would like to suggest a topic for comment in one of
our future emailers, please let me know. You can always
reach me at rory@coakleyrealty.com
or by phone (240)-205-7298 ext. 101. I look forward to hearing
from you!
Rory
S. Coakley
Coakley Realty, Inc.
20 Courthouse Square - Suite 106
Rockville, MD 20850
www.coakleyrealty.com
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