The First-time Home Buyers Tax Credit Makes Apartment Buying a Little Sweeter

homeHere are some important changes to the Home Buyers Tax Credit Bill which could benefit those of you who are considering buying a New York apartment in the coming months. How will it effect Manhattan Real Estate? The modified Home Buyers Tax Credit states that first time buyers and those who have not owned a home for the last 3 years will be eligible for up to an $8000 tax credit;this credit is equivalent to 10 percent of the purchase price of the home. The home must be the buyer's principal residence and purchased on or after January 1, 2009 and before December 1, 2009. The revised date of December 09 is a huge improvement to the previously stipulated July 1, 2009 cut off date. The most exciting change to this First Time Home Buyers Tax Credit Bill is that this tax credit does not need to be repaid; the credit will be claimed on a tax return to reduce the purchaser's income tax liability and the unused amount will be refunded as a check to the purchaser. As always there are income restrictions, this tax credit is for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). It phases out above those caps. You should speak with a tax professional about your specific tax situation. We hope that you will speak with a real estate professional about finding the perfect home for you in New York City.

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