Have you recently purchased a home? Are you thinking about buying one? Well heres something that you might find useful. As part of the Housing and Economic Recovery Act of 2008, first time home buyers will receive a $7,500 tax credit.
A first time home buyer doesnt necessarily mean someone whos never owned a home before “ its anyone who has never owned a home, or has not owned a primary residence in the last 3 years. Oh yeah, you have to be a US citizen as well. The great part about this tax credit, is that its interest free. Yup, INTEREST FREE!
The credit is based on 10% of the homes purchase price, which is capped at $7,500. The buyer then must repay the credit over 15 years, or when they sell the home. The payments must be made in equal installments, but again, its interest free.
There are some income restrictions however. The tax credit is available to those who make $75,000 a year or less(based on their gross income), or $150,000 for couples who file jointly. Those who make between $75,000 and $95,000(and couples who earn between $150,000 and $170,000) are eligible for a partial tax credit.
Probably the best part of this is that its refundable. So if you dont owe any taxes when you file, the government would send a check for the amount owed to you. And if you do owe taxes, this tax credit would help out and hopefully provide you with a partial refund, depending on how much you owe.
Those who claim the entire $7,500 tax credit would be responsible for paying $500 a year, for 15 years, making their first payment 2 years after the credit was claimed. This is a pretty incredible deal. But if you want to take advantage of this tax break, you must buy your home by June 30th of 2009. Only homes purchased between April 9th, 2008 through June of 2009 are eligible.
For more information, please contact me. And if youre ready to buy, give me a call. There are deals out there and I promise, more buyers will be looking to take advantage of them in the near future.
Denny Oh 858“243“2092 [email protected]