Here is a summary of the new residential tax credit from our favorite loan officer:

§ The amount of the available tax credit is the equivalent of 10% of the home’s purchase price – capped at $8,000 or $4,000 for married couples filing separately.

§ The tax credit applies only to first-time homebuyers purchasing a primary residence. A first-time homebuyer is defined as a buyer who has not owned a primary residence in the three years prior to the purchase.

§ Qualifying taxpayers earning up to $75,000 Adjusted Gross Income or $150,000 for joint filers may qualify for the maximum credit. The credit begins to phase out for taxpayers whose adjusted gross income exceeds these limits.

§ Unlike the tax credit of 2008 this tax credit DOES NOT require a repayment provided the home remains the homebuyer’s primary residence for at least 36-months after the purchase date.

§ The tax credit applies to qualifying purchases made between January 1, 2009 and December 1, 2009.

The Internal Revenue Service announced today…

Taxpayers who qualify for the tax credit have the option of claiming the credit on either their 2008 tax return – due April 15, or on their 2009 tax return next year.

JOHN SEMON
Home Mortgage Consultant I Wells Fargo Home Mortgage
404.358.0013 (o) I 866.512.1673 (e-fax)

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. Equal Housing Lender