The government’s First-Time Home Buyer Tax Credit expires December 1, 2009.
If you expect to use the program in conjunction with a home purchase, therefore, you may want to consider yourself officially “on the clock”.
Assuming a 60-day window between contract and closing, there are now 77 days left to find a home and go under contract for it.
The First-Time Home Buyer Tax Credit refunds up to $8,000 at Tax Time for qualified home buyers. A few of the program’s qualification criteria include:
The tax credit itself is limited to $8,000 or 10% of the purchase price, whichever is less.
Remember, though: The refund is a true tax credit — not a deduction. This means that a taxpayer owing $8,000 to the IRS and claiming the $8,000 First-Time Home Buyer Tax Credit would owe the IRS nothing on April 15, 2010.
The complete list of qualifying criteria is posted on the IRS website.