Act Now! Home Buyer Tax Credit in 2009

Sarasota home buyers considering the purchase of their first home now have the chance to take advantage of a federal income tax credit through the American Recovery and Reinvestment Act.

This act modifies the existing, temporary federal income tax credit for qualified first-time home buyers. But the opportunity is time-sensitive, as the purchase must be made before December 1, 2009.

Qualified home buyers - individuals who have not owned a home during the past three years - can receive a federal tax credit of 10 percent of the cost of their principal residence, up to a maximum credit of $8,000. Buyers receive a tax credit on their personal income tax return in the calendar year following the year of closing on their home.

The modified version does not require home buyers to repay the credit as long as they retain ownership of the home as their primary residence, for three years. This incentive is also retroactive, covering those homes purchased on or after January 1, 2009.

To be eligible for the tax credit, qualified first-time buyers must purchase and reside in the principal residence before December 1, 2009. There are also income limits; however should a home buyer exceed the income limit, partial tax credits may be available.

The convergence of low interest rates, a healthy inventory, buyers-side power in negotiation, and this credit results in a “perfect storm” of opportunity for home buyers in 2009. Need more information? Call True Real Estate, Sarasota’s Exclusive Buyer Agents and let us help you get into that dream home.