| Owning one's own home is a dream of every | | | | home buyer if you have not bought a home as a |
| individual. But as fate would have it, the current | | | | primary residence in the three years prior to your |
| economic crisis with rampant job cuts in the US have | | | | purchase. This applies to both you and your spouse if |
| made this dream a distant reality for many. The | | | | you are married. Therefore, if you have not purchased |
| introduction of President Obama's home stimulus | | | | a home as a primary residence in the last three years |
| package has, however, made this goal significantly | | | | but your spouse has, then you do not qualify. A |
| more achievable for first time home buyers. | | | | primary residence does not include vacation homes; |
| The first time home buyer stimulus package offers | | | | therefore if you own such a property you may still |
| individuals a tax credit of 10% on the purchase price of | | | | qualify for the credit. There are also no restrictions on |
| a home (with a maximum amount of $8000) for | | | | the specific type of home (e.g. townhouses, |
| homes purchased between January 1st, 2009 and | | | | condominiums, mobile homes, houseboats, etc) that |
| April 30th, 2010. For those of you already familiar with | | | | can qualify as long as it is your primary residence. |
| this program, recent legislative changes have extended | | | | You must also be within certain income limits (i.e. not |
| the previous purchase deadline of December 1st, 2009. | | | | earn above a certain amount) to qualify for this tax |
| Sales occurring by June 30, 2010 are also covered | | | | credit. For home purchases after November 6th, 2009, |
| provided a binding contract is entered into by April 10, | | | | the income limit is $125,000 per year for single tax |
| 2010. | | | | payers and $225,000 for couples filing jointly. These |
| A key point to mention here is that this credit is a grant | | | | limits have also been amended recently from the |
| which does not need to be paid back (unless the | | | | previous limits of $75,000 for single tax payers and |
| home is sold within the first three years). The entire | | | | $150,000 for couples filing jointly. |
| credit amount is deducted from the total taxes owed | | | | I hope you found this overview of the first time home |
| to the government. Therefore, an individual qualifying | | | | buyer stimulus package to be useful. There are many |
| for this credit who owes the government $8,000 in | | | | nuances surrounding the home stimulus legislation and it |
| taxes would then owe nothing. | | | | is always challenging to keep up with all the changes |
| There are certain criteria that have to be met to | | | | going on. Just make sure you do all the necessary |
| qualify for this tax credit. First and foremost, you must | | | | research, stay up to date on the latest developments, |
| meet the definition of a first time home buyer. For the | | | | claim your credit on your next tax return, and enjoy |
| purposes of the stimulus package, you are a first | | | | your new home! |