Time is running out for first-time home buyers!

You or your friends and family can receive a tax credit of up to $8,000 for buying your first home. A first time buyer is considered to be someone who has not owned a home in the last 3 years.

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers* who purchase a home after December 31, 2008 and before December 1, 2009. With home prices lower than they have been in a long time, this is a great opportunity to help more people become new homeowners.

Here are some facts you may want to know:

  Participating in the tax credit program is easy. You claim your tax credit on your federal income tax return.
 
  The tax credit is a straight dollar-for-dollar reduction of your tax bill.
 
  For first-time home buyers purchasing a home, the tax credit is equal to 10% of the home’s purchase price, not to exceed $8,000.
 
  The credit begins to phase out for taxpayers with adjusted gross income in excess of $75,000, or $150,000 in the case of a joint return.
 
  Within the first three years of the purchase date, if the client either sells the home or it ceases to be their primary residence, the tax credit must be repaid to the Internal Revenue Service.
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