The window is starting to close on an $8,000 tax credit for first-time home buyers.

House purchases must be closed before Dec. 1 to qualify for the credit, which can be received now or when you file your 2009 taxes.

The $8000 credit has had a big influence in the market around the country, and is obviously having an impact in Contra Costa County. The National Association of Realtors estimates around one-third of home sales this year reported nationally are first-time home buyers. In a normal market, it’s between 10 and 15 percent

The tax credit, which was part of the American Recovery and Reinvestment Act, is for 10 percent of the home’s purchase price, up to $8,000 for a first-time home buyer, defined as a buyer who has not owned a house for the previous three years. The credit is available for those with adjusted gross income of less than $75,000 for a single filer and $150,000 for a married couple filing jointly.

The credit is for houses bought from Dec. 31, 2008, until Dec. 1, 2009, and can be taken either as an amendment to your 2008 taxes or on your 2009 taxes. It’s very easy to amend your return for the credit. The Internal Revenue Service will process an amended return, which can be filed online using Form 1040X and attaching Form 5405, in eight to 12 weeks.

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Email Craig if you would like to know more about buying or selling a home or condo in Danville, CA (925) 984-4910.