How does the $8000 Tax Credit work

Q. How does the $8000 tax credit work for First-Time Homebuyer?

A. This program does not require any repayment of the credit provided that the purchaser uses the property as their primary residence for a period of thirty-six months after their date of purchase.

Buyer will receive a credit of up to ten percent (10%) of the purchase price or a maximum of $8000.00 as a credit on your 2010 tax return, provided that your new home has a final sale price of $800,000 or less. This program went into effect on January 1, 2010 and is available to qualified buyers of their first new home provided that they have the property under purchase contract on or before April 30, 2010 and closed prior to June 30, 2010 to be able to qualify for the credit.

Buyer(s)cannot have an income greater than $75,000.00 as non-married purchaser or $150,000.00 for married purchases that file a joint tax return.

Q. When does the Tax Credit of 2009 run out?

A. First Time Homebyer Credit

Q. Can I file electronically?

A. No. Because of the documentation requirements for claiming the credit, taxpayers who claim the credit on their 2009 tax return must file a paper — not electronic — return and attach Form 5405