New Tax Credit For Some Home Buyers

In 2009 there is a temporary, one-time tax credit up to ten percent of property value , not to exceed $7500 for joint filers and subject to income phaseouts. Under the act's housing assistance section, first-time buyers of a principle residence who purchase the property between April 8, 2008 and July 1, 2009, can take this refundable federal tax credit, which phases out for joint filers and subject to income phaseouts. Under the act's housing assistance section, first-time buyers of a principle residence who purchase the property between April,8 2008 and July 1, 2009, can take this refundable federal tax credit, which phases out for joint incomes between $150,000 AND $170,000.

Although the tax credit limits are low for some areas of the country, many view this provision as a down payment assistance device, since it provides up to ten percent of a home's value . This credit is self-supporting, since it requires taxpayers who receive it to repay it over 15 years through their annual returns.