The December 1, 2009, deadline to get the first-time home buyer income tax credit for Louisville real estate purchases is fast approaching. Under the provisions of the American Recovery and Reinvestment Act of 2009, first time home buyers who purchase a home between January 1, 2009, and December 1, 2009, will qualify for up to $8,000 in income tax credit. According to a recent ruling by the United States Department of Housing and Urban Development, the first-time home buyer tax rebate is available up front to finance loans meant to cover closing costs, purchase a lower interest rate or to put up more than the minimum required down payment. This credit does not need to be repaid, provided the home buyer retains possession of the house for at least three years. However, if the purchaser sells the home before the end of the three-year time limit, he or she will need to repay the amount. In order to qualify as a first time home buyer, the purchaser or the purchaser’s spouse must not have owned a residential property for three years prior to the credit-earning purchase. The actual amount of the income tax credit is equal to 10 percent of the purchase price of the home, up to a maximum possible rebate of $8,000. This amount may be reduced depending on the purchaser’s income. The cutoff income to receive the maximum tax benefit is $75,000 for singles and $150,000 for married couples. For those making more than the cutoff income, there is a reduction in the total amount of the first-time home buyer rebate. A single first-time home buyer with an income range of $75,000 to $95,000 is eligible for a portion of the tax credit, as well as couples filing jointly in the income range of $150,000 to $170,000. If you have any questions about Louisville real estate  services, feel free to call 502.744.9504 or fill out our contact form for a fast reply!