First Time Home Buyer - $7500 Tax Credit

According to the temporary tax credit President Bush approved in summer of 2008, first time homebuyers are able to received $7,500 credit for the purchase of homes before July 1, 2009. This can be claimed on your 2008 taxes or your 2009 taxes. I want you to know what your options are before making a purchase and claiming the credit on your tax return. Below is the summary of how the tax credit work.

*Your income cannot exceed $75,000 for individuals and $150,000 for joint return.

*Credit is 10% of the cost of the home, up to a maximum credit of $7,500

*Amount is repaid over 15 years with $502.50 each year. The rule is you pay 6.67% back each year.

*Claim the credit on IRS form 1040 tax return or any special forms the IRS might advise.

*The credit is for first time homebuyers who make their purchases between 1/1/2009 and 7/1/2009. You are permitted to treat the purchase as if it has occured on December 31, 2008. For more details refer to the following link.

http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf

Xiao-Qing Lu (Shall-Ching)

Keller Williams Realty

Phone: 702-212-2288

www.BigLifeEvent.com

Real Estate for the Next Generation!

MBA - Rutgers University 2002

BS - Rutgers University 1996