March 10th, 2009 5:20 PM by Brian Wess
In Denver, Colorado 2 weeks ago, President Obama signed the "American Recovery and Reinvestment Act of 2009"
Regardless of personal opinion or other ramifications regarding this act, there are some interesting and helpful provisions for Home Owners and Home Buyers that I will be detailing in the days to come.
Today's Topic: First-Time Home Buyer Tax Credit
The First is the modification of the previously existing $7,500 First-Time Home Buyer Tax Credit that was created as of July 2008 for First-Time purchases of Single Family Residential Purchases on or After April 9, 2008. This credit has been increased from the lesser of 10% of the cost of the home up to $7,500 to a new maximum of $8,000.
The most important modification is that the tax credit no longer needs to be re-paid, unlike under the old plan, but is now permanent with no recapture...as long as the buyer lives in the home for more than 3 years. This modification is also RETROACTIVE to purchases made since 1 January 2009 through 1 December 2009
The PDF Chart at the link below summarizes the changes and is courtesy of The National Association Of REALTORS®