What is the Income Limit for the $8,000 Tax Credit?

Just the other day I was talking with a client and she asked me about the $8000 first time home buyers tax credit. A friend of hers told her that the tax credit for a couple was limited to an income of $75,000. I gently told her that that is not the case, the income limit for a couple filing jointly is $150,000 and the tax credit its self is 10% of the cost of the home. So the purchase price of the home must be $80,000 or more to reach the maximum $8000 tax credit.

The nice thing about the tax credit is that you do not have to pay it back if you stay in the home for 3 years.(If you do sell your home within 3 years of the purchase then the money will be “recaptured” at the time of the sale. )

The last thing she wanted to know was will the program be extended beyond December 1^st of this year. I have not heard a yes or a no on that one and I would not bet either way, my best advice for her is get into a home now and take advantage of this historic offer, and very low rates. If you would like to take advantage of the tax credit then send me an email (mike@teamtobin.com) or check my website for contact information and I will show you how.