FYI… For those who have not owned a home in the last three years.

Since many of you have asked me about this credit, I’m pasting the details that I received from the Charleston Trident Association of Realtors. Although this doesn’t apply to most of my friends and clients, it may help to share this information with family and friends who are in a position to take advantage of this credit.

FIRST‐TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act

PROVISIONS EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009

AMOUNT OF CREDIT Maximum credit issued will be $8,000

ELIGIBLE PROPERTY Any single family residence (including condos, co-ops and townhouses) that will be used as the principal residence.

REFUNDABLE Yes. Reduces (or, can eliminate) income tax liability for the year of the purchase. Any unused amount of tax credit will be refunded to the homebuyer.

INCOME LIMIT?  Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 for a joint return).

FIRST TIME HOMEBUYER ONLY?
Yes. Purchaser (and purchaser’s spouse) may not
have owned a principal residence in 3 years prior to
purchase.

REVENUE BOND FINANCING Purchasers who utilize revenue bond financing can use credit.

REPAYMENT None, for purchases on after January 1, 2009 and
before December 1, 2009.

RECAPTURE None, unless the home is sold within three years of
the purchase. If the home is sold within three years
original purchase, the entire amount of credit is
recaptured upon sale.

TERMINATION December 1, 2009

EFFECTIVE DATE Effective as of January 1, 2009

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