first time home buyer grant

2009 Home Buyer Tax Credit

Just thought I would write a little about the first time home buyer tax credit.  First of all it is a credit not a deduction, which means it comes straight from the bottom line.  So, if you owe $1000.00 on your taxes then with the $7500.00 credit you will receive a check for $6500.00.  A deduction comes off of your taxable income.  The credit is much better.  However in this case the credit is actually a loan that must be paid at $500.00 a year for fifteen years.  Those who do the math will realize this is interest free.  Not as great as free money but you will never get a loan with better terms.

Who is Eligible

First time home buyer is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase.

Limited Time

The Tax Credit is eligible on home purchases between April 9, 2008 and July 1, 2009.

Income limit

The income limit for the full credit is $75,000.00 for singles and $150,000.00 for married people.  Partial credits may apply at higher incomes.

How Much is the Credit

The Credit is 10% of the home purchase or $7500.00 whichever is lower.

As far as I could find this tax credit does not disallow you from the tax deduction you get on mortgage interest.  So in short if you are currently throwing your money away on rent you should talk to your accountant to verify your situation and then go out and claim your little part of the world.  The time will probably never be better than right now. 

For more information you can check out the National Association of Home Buiders tax credit site at FederalHousingTaxCredit.com