Time is running out for 1st time Hoboken real estate buyers to take advantage of the $8,000 tax credit enacted by the US Congress. The deadline for purchasing is December 1, 2009. You must close and transfer title before December 1, 2009 to be eligible. Here are some additional frequently asked questions that Hoboken real estate buyers may have about the tax credit before purchasing.
The Tax Credit Overview for Hoboken 1st Time Home Buyers
- Who is eligible? A first time home buyer who has not owned a principal residence during the three year period prior to the purchase. For married couples, the law will look at the home ownership history for both the home buyer and their spouse.
- How exactly does this tax credit work? Every dollar of the tax credit reduces income taxes by a dollar.
- What are the income restrictions? Single individuals filing Form 1040 are eligible for the tax credit if their income does not exceed $75,000. Married couples qualify for the tax credit if their combined income does not exceed $150,000.
- Do I have to repay the 2009 tax credit? No. There are no prepayments of the 2009 tax credit.
- Will I ever have to repay any of the credit back? Yes. If you claim the credit and sell your property within 3 years of the date of purchase , you will be required to repay the full amount of any tax credit, including any refund you received from it.