Your 2009 Stimulus Package - $8,000 To Buy Your 1st Home

Your 2009 Stimulus Package - $8,000 To Buy Your 1st Home

Dear Friend of Movoto,

If you're a 1st time home buyer, 2009 may be the best year you've seen - home prices are at multi-year lows, high inventory levels give you a great choice of homes, mortgage rates are at historic lows and (this year only) Uncle Sam will help you buy.

For 2009 ONLY, the U.S. Government is offering a special tax credit for 1st time home buyers. Here are the details you need to understand the basics and links to some great online resources.

The Federal Program Basics

How Much? 10% of purchase price, up to $8,000

Who Qualifies? 1st Time Buyers (any person/couple who hasn't owned a home for 3 years) buying a principal residence.

Income Limits? Credit starts phasing out at $75,000 ($150,000 married filing jointly) Modified Adjusted Gross Income (MAGI) and is completely phased out at $95,000 ($170,000 married filing jointly) MAGI.

Do I Have to Pay The Money Back? Keep the house more than 3 years if you don't want to pay the credit back. If you sell before 3 years Uncle Sam will want 100% of your credit back.

When Do I Have to Buy? You must close escrow January 1, 2009 to December 1, 2009.

I bought a House, When Can I Get the Money? By filing an amended 2008 tax return you can get the money this year (http://www.irs.gov/pub/irs-news/ir-09-014.pdf). Otherwise, claim the credit on your 2009 return. See "Resources For More Information" below for more strategies and talk to your tax advisor - this part can be complicated. As just one example to consider, your MAGI might qualify you for a larger credit in one year.

Resources For More Information

Make sure to talk with your tax advisor - the government never makes anything simple. Check out http://www.federalhousingtaxcredit.com/2009/faq.php for a good FAQ on this program.