First Time Homebuyer $8,000 Tax Credit


*More 1st Time Buyer Info*	First-Time Home Buyer Tax Credit	Contact Us

*Do I Qualify for the Credit?*	Yes	No
I/We have not owned a home in the past three years	_______	_______
If Single, my Tax Return Adjusted Gross Income is less than $145,000…..OR If Married, our Tax Return Adjusted Gross Income is less than $245,000
	_______	_______
I/We will sign a purchase agreement for a home on or before April 30, 2010	_______	_______
I/We will occupy this home as our personal residence	_______	_______

If you answered yes to all of the above questions, you may be eligible. Read On!

How much is the First Time Home Buyer Credit?

The credit is equal to 10% of the purchase price of your home. If your home was purchased for $80,000 or more, you would be eligible for the full $8,000 Credit.

If your Adjusted Gross Income is greater than $125,000 (single) or $225,000 (married), the total credit will be reduced. The credit is reduced by $1,000 for every $2,500 your AGI exceeds $125,000 (single) or $225,000 (married).

If I did not owe any taxes in 2009 (or will not in 2010), can I still receive the Credit? Yes! Even if you owe or owed no taxes, you will be sent a check for the full amount of the credit.

What Homes are eligible for the credit?

All Single Family Homes, Townhomes and Condominiums. Manufactured homes do not qualify.

For newly constructed homes, you must purchase AND occupy the home by June 30th, 2010.

Do I have to pay back the First Time Home Buyer Tax Credit if I sell my home?

If you purchased your home in 2008, you must not sell the home for 15 years. If you sell it prior to the 15 year period, you must repay $500 for each year under 15.

If you purchased your home in 2009 or 2010, you must repay the full amount of the credit if you sell it within three years. After three years, you do not have to repay any of the credit.

How do I obtain the credit (How can I get my check!)?

You must file for the credit on your Tax Return, IRS Form 1040.	IRS Form 5405
Form 5405 is used to calculate the amount of the credit.	IRS Form 5405

What if I have already filed my 2009 Tax Return?

File an Amended Return, Form 1040X. It is very simple, honest!	IRS Form 1040X
Or file for the credit on your 2010 Tax Return.	IRS Form 1040X

Additional Information

The First Time Home Buyer Tax Credit is the best incentive today for 1^st Time Buyers to purchase a home. Single Family Homes, Townhomes and Condominiums qualify for the credit. Homes located in all areas of Tucson are eligible, including homes in Vail, Sahuarita, Oro Valley, Marana and Green Valley!

Unlike the 2008 Tax Credit, which requires you to repay a portion of the credit if you sell your home within 15 years (who keeps a home that long!), the 2009 First Time Home Buyer Credit only requires you to live in the home for 3 years.

Most First Time Home Buyers should qualify for the full amount of the credit ($8,000). The credit is equal to 10% of the value of the home, so any home with a purchase price of at least $80,000 ($80,000 * 10% = $8,000) will be eligible for the full credit. IRS Form 5405 is used to calculate the credit and, unlike most IRS forms, it is relatively easy to complete.

Some Buyers have asked, “If I paid or owe no taxes, will the Federal Government still send me a check for the credit? The short answer is “Yes!” Providing you qualify for the credit, the US Treasury will send you a check for the full amount of the credit.

First Time Home Buyers usually incur a lot of costs in buying a home, including moving expenses, new furniture, home furnishings, etc. and would prefer to have their $8,000 as soon as possible. If a First Time Home Buyer has already filed their 2009 Tax Return, must they wait until their 2010 return to receive the credit?

No! You can file an amended return, IRS Form 1040X, and receive a check this year! Many of you will be skeptical, but even the 1040X is easy to complete. IRS Form 5405, First-Time Homebuyer Tax Credit, must also be completed and filed with the amended tax return.

For your convenience, we have included links to the Forms and Instructions for Form 5405 and 1040X. Please feel free to contact us if you have any questions.

Many First Time Home Buyers have limited funds to ourchase a home “Purchasing a home is too expensive. There is the down payment, closing costs, inspection fees, etc. and we just cannot afford it. FHA Loans require a 3.5% down payment, and although VA Loans do not require one, what if I do not qualify for VA Benefits?"

No Problem! If you purchase a home in so-called “rural” areas of Tucson, you may qualify for a USDA Rural Development Loan. Like VA, this loan program does not require a down payment; however, your home must be located in a “rural” Tucson area.

What is considered “Rural” Tucson? Generally speaking, here are some approximate boundaries:

In Southeast Tucson, Homes located East of Houghton Road qualify (homes in Rancho Del Lago and all of Vail are eligible; unfortunately Rita Ranch is not). Homes located West of Houghton Road but South of the Old Vail Connection Road are also eligible for the credit. This includes all of the subdivisions off of Sahuarita Road, including Sycamore Canyon, Sycamore Springs, Sycamore Hills Estates and Santa Rita Acre Estates.

In Northwest Tucson, your home must be located North of Tangerine Road (all homes in Rancho Vistoso and Dove Mountain are eligible).

In the Sahuarita area, the Northern Boundary is the Old Vail Connection Road (all homes located in Rancho Sahuarita qualify).

In the Southwest, homes West of Camino de Oeste and South of Irvington are eligible for the credit (all homes in Star Valley qualify).

The credit is not limited to just First Time Home Buyers. If you have outgrown your present home (more family members, etc.) you may be eligible for the credit. There are some income restrictions; you cannot make too much money. More details may be found on the USDA Rural Development Loan page.

Our objective in designing InsideTucsonRealEstate.com was to provide the absolute best, single-source resource for information and advice pertaining to the sale or purchase of real estate. We have also included extensive search capabilities into our website, as we know that over 87% of Buyers and Sellers research homes on the Internet before contacting a Realtor.

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