First time home buyer can take $8000 tax credit to buy a house in 2009 as long as they make a purchase before December 1st 2009. To get $8000 tax credit, home buyer must not own any house within the last three years and intend to live in the house for at least three years. Unlike previous year first home buyer tax credit of $7500, where the home buyer is required to pay it back to government overtime, this tax credit doesn't require qualified home owner to pay it back overtime. However if the home owners decide to sell their home before three years period then they have to pay it back to government.
In order to qualify for full $8000 first home buyer tax credit, the house price should be more than $80,000, if the house price less than that the deduction only 10% of the house price up to $8000 tax credit. The first time home buyer that make modified adjusted gross income more than $75,000 or $150,000 for joint married couple will not receive full credit or the amount of credit begin to phase out. Talk to your tax advisor or CPA regarding this.
