NAR: Extend and Expand the Homebuyer Tax Credit

The $8,000 first-time home buyer tax credit is set to expire December 1st and NAR is calling Realtors® all over the United States to action to urge their congressional representatives to extend and expand this incentive. NAR President Charles McMillan and his staff have put together this video that features Realtors® urging leaders to take action now.

Take action now and let your congressional leaders know you want to extend and expand this opportunity»

Here is a brief overview of how the first time homebuyer tax credit works:

• The tax credit applies to purchases that close prior to December 31, 2009.
• The stimulus package program applies only to those homes that are used as a taxpayer’s principal residence.
• This stimulus program will reduce a taxpayer’s tax bill or increase his or her refund.
• The program is fully refundable which means the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
• Only the purchase of a main home located in the United States will qualify for this program valid until December 2009.
• Vacation homes as well as rental properties are not eligible for this tax credit incentive.
• Taxpayers who owned a home during any time during the three years prior to the purchase are not qualified to take advantage of this program. This means that first-time homebuyers and those who have not owned a home in the past three years prior to a purchase are eligible for the tax credit.

For an eligible purchase in 2009, you are allowed to choose the credit on either your 2008 (or amended 2008 return) or 2009 federal tax return.