How the First Time Home Buyer $8000.00 Tax Credit will help Virginia Beach Real Estate Buyers

If you are a first time home buyer considering purchasing real estate in Virginia Beach, Chesapeake, Suffolk, Norfolk, or other parts of Hampton Roads then you should take advantage of the $8000 Tax Credit being offered by the Government.

Free Money to First Time Home Buyers

The American Recovery and Reinvestment Act of 2009 authorized a $8000.00 tax credit for those who meet certain criteria below:

First-time home buyers who purchased a principal residence on or after April 9, 2008 and before January 1, 2009 may qualify for a $7,500 tax credit. Go here for that information.

American Recovery Act stipulations:

The tax credit is for first-time real estate home buyers only. The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the home ownership history of both the home buyer and his/her spouse. This can be for either resale, REO’s, Short Sales, or new construction properties.
For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
The real estate tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. Yes. The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with a MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.