$7500 Tax Credit

First time home buyers often do not know where to look for assistance. With the doing away of down payment assistance, finding a way to make a home dream a reality seems like just a dream for many buyers. There are more options than a buyer is sometimes aware. However once a home purchase is reality, there is a $7,500 credit for first timers.

Everyone is buzzing about this tax credit. So what does it entail and what do you have to do to get it? With some research and phone calls I found some information to assist buyers and their agents looking for information:

The credit (up to $7,500) is available for first-time home buyers only.

Only available for homes purchased between April 8, 2008 and before July 1, 2009.

Individuals tax filers with an income of up to $75,000 qualify

Married tax filers with incomes up to $150,000 qualify.

Must be repaid over 15 years (1/15 per year)

The credit increases a refunda or reduces tax owed by a filer

The credit is not like the Economic Stimulis Rebate. That money did not have to be paid back. The credit is very much like an interest-free loan meaning it must be repaid.

If an eligible taxpayer who buys their first home before the deadline above claims the maximum available (credit of $7,500) on their federal income tax return must begin repaying the credit by including 1/15 of this amount, or $500, as an additional tax on their future years tax return.

EX) Taking the full amount in 2009 ($7500), the tax payer would include their repayment of the credit of 1/15 on their 2011 return and continue paying until 2025.

See my website for frequently asked questions about this credit. I strongly recommend that you also contact a tax professional for better clairification and more detailed instuctions.

Visit www.helpyoubuyyour1sthome.com for Frequently asked Questions! If the link does not take you there directly, please look under the For Buyers section