First Time Home Buyer Tax Credit Will Be $8000 for Flagstaff Buyers

At times during the Senate’s intoxication over drafting the Stimulus Bill, it appeared that all homebuyers in 2009 might get a $15,000 kick-back from the federal taxpayers. For the good of all, that did not happen. But first-time homebuyers will be better off in 2009 than those who bought in 2008. The 2009 tax credit will be $500 higher, if they are buying in Flagstaff and many other places, and is a real, permanent credit, not a repayable loan. Like the 2008 credit, the new credit is to be claimed on a tax return to reduce the purchaser's income tax liability.  If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

Here’s the comparison between the 2008 First-Time Homebuyer Tax Credit, which was passed last August as part of the 2008 Housing and Economic Recovery Act, and the 2009 version that was approved by Congress on Friday as part of the American Recovery and Reinvestment Act of 2009:

Note: Chart is compliments of the National Association of Realtors.® You may have purchased a home sometime in your lifetime and still be considered a “first-time homebuyer” – consult your tax advisor for details.

Update: Here is a link to the tax form that you need to use to claim the credit when you file your 2008 or 2009 tax return.