If you are a First Time Homebuyer and in need of clarification offered by the American Recovery and Reinvestment Act please find below a simply bullet point detailing of the rules requirements for the First Time Home Buyer Tax Credit .

• First Time Home Buyer (or if you have not owned a home in 3 years)
• Home Must be located in the United States
• Must be your Primary Residence
• For New Construction, the Purchase Date is the date you occupy the home – So you must move-in prior to December 1, 2009
• Vacation Homes and Rental Properties are NOT eligible
• If you sell your home withing three years of the Purchase Date then the entire amount of the credit is recaptured by the government on the sale. (this is to prevent people from “flipping” homes in order to receive the credit)
• Salary Caps:  $75,000 a year Single – Phase Out Up to $95,000  /  $150,000 a year Joint – Phase Out Up to $170,000
• Maximum Credit is $8,000 (or up to 10% of the purchase price)
• It is Refundable (if your total tax liability is less than $8,000 then the IRS will send you a refund for the balance)
• First Time HomeBuyer Tax Credit availability ends December 1, 2009

If you have any questions or need clarification on any of the above items, please email me at lpruchnik@rubloff.com or liane@onlinechicagorealestate.com and I will assist you in anyway I can.