Yep, you Metro Detroit first time home buyers who have been thinking about stopping renting and starting owning now have 8,000 new reasons to get hopping and start shopping. Uncle Sam is giving you that much in good ol’ US dollars. You’ll see it as a credit on your 2009 tax return, so it could end up as a check in your mailbox in April.
We’ll give you the highlights:
- Eligible Property – any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.
- Income Limit - Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).
- Eligible First Time Buyer – Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.
- Repayment – No repayment for purchases on or after January 1, 2009 and before December 1, 2009
- Recapture – If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
Check out this link for the differences between last year’s plan and this years.