There has been an update to the American Recovery and Reinvestment Act of 2009 for first time home buyers.
The initial tax credit of $7500 has been increased to $8000.
The tax credit does NOT have to be repaid.
First time homebuyers who have not owned a home in the last 3 years are eligible.
Must purchase between January 1, 2009 and December 1, 2009, the tax credit will expire.
The tax credit is equal to 10% of the home's purchase price up to a maximum of $80,000.
If a buyer already purchased in 2009 and used the $7500 tax credit they can file an amended 2008 tax return with a 1040X form. Consult your tax advisor.
New construction homes also qualify, however, the date of first occupancy must be on or after January 2009 and before December 1, 2009.
For more information go to www.federalhousingtaxcredit.com
