First Time Homebuyers Federal Income Tax Credit Improved and Extended


Russell Wolfertz, Jr.
ERA Cousens Realty in Rockland

First-Time Homebuyers Federal Income Tax Credit Improved and Extended
Area real estate professional notes beneficial changes in the American Recovery and Reinvestment Act
Rockland, Maine (Grassroots Newswire) 3/12/09 -- Individuals and couples contemplating the purchase of their first home have an opportunity to take advantage of a federal income tax credit that can help put them in the home of their dreams - and the incentive even more attractive than before, noted Russ Wolfertz, JR., Owner of ERA Cousens Realty in Rockland.

"The American Recovery and Reinvestment Act modified the existing, temporary federal income tax credit for qualified first-time homebuyers," Wolfertz said, "and for those who qualify, the changes to this incentive make it even more valuable. The incentive has been extended, but it won’t last forever; for those considering home ownership, 2009 is proving to be a unique and compelling opportunity."

In this version of the tax credit, qualified "first-time" buyer - defined as an individual who has 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 (in essence, an interest-free loan) on their personal income tax return in the calendar year following the year of closing on their home.

Unlike the previously available tax credit, the modified version does not require homebuyers 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 homes purchased on or after January 1, 2009.

"This temporary tax credit provides one more sound reason for first-time buyers to take advantage of today’s attractive interest rates and ample inventory of homes, as well as save on their federal taxes," Wolfertz said. "The benefits are significant. For example, if a home costs $65,000, the allowable credit is $6,500. For a home that’s purchased for $120,000, the allowable credit is $8,000."

Wolfertz cautions that although the incentive has been extended, it is only temporary. To be eligible for the tax credit, qualified first-time buyers must purchase and reside in the principal residence before December 1, 2009. Other eligibility requirements must be met to receive the credit, Wolfertz noted, including income limits. Individuals who exceed the limit may be eligible for a partial credit. Buyers should seek advice from a professional tax advisor for specific tax calculations.

To find out more about the American Recovery and Reinvestment Act temporary federal income tax credit for first-time homebuyers and whether it may be available to you, contact your tax professional or legal adviser; and contact Russell Wolfertz, Jr. of ERA Cousens Realty in Rockland at or 207-596-6433 to find your new home.

About ERA Cousens Realty in Rockland
Cousens Realty was founded in 1956. The ERA affiliation began in 1976 and has been maintained for the benefit of the company and our sales associates, clients and customers. ERA offers a wide variety of services including a home warranty plan, a guaranteed sales plan, effective training and worldwide referrals. ERA Cousens Realty is a memeber of the National Association of Realtors, the Maine Association of Realtors, the Mid-Coast Board of Realtors, the Maine Real Estate Information Service (MREIS)and the Penobscot Bay Regional Chamber of Commerce.

Comments (0)
If you wish to comment, please login.