The Diamond Blog

Here are details on the $8,000 tax credit for first time homebuyers that can be used on all properties that are part of the The American Recovery and Reinvestment Act of 2009 ...

• Tax credit equals lessor of 10% of the property's value or $8,000
• Effective for properties bought between January 1, 2009 and December 1, 2009
• The property purchased must be single-family (condos & townhouses included) and used as a principal residence for three years.
• There is an income limit of $75,000 per individual (adjusted gross income) or $150,000 if filing a joint reurn.  Individuals above these salaries may still receive a portion of the tax credit.  IRS Form 5405 will help to determine this. 
• Only first-time homebuyers are eligible or the purchaser (and purchaser's spouse) must not have owned a principal residence in the last three years
• This tax credit does not have to be repaid if the property is purchased between 1/1/09-12/1/09
• This tax credit can be used on all properties, as long as indviduals meet the federal criteria. 

This is just a basic summary, it is recommended that you consult a tax professional for more specific information that may pertain to you, as several states also have local policies.