Daily Real Estate News | December 29, 2008

Home Buyer Tax Credit: How It Works

First-time homebuyers in 2008 can take an income-tax credit on their purchase, thanks to passage in Congress earlier this year of the first-time home buyer tax credit. The definition of first-time homebuyer is generous. To get the credit, the homebuyer cannot have owned a home in the previous three years. The home must be a principal residence and purchased between April 9, 2008 and July 1, 2009. The credit is equal to 10 percent of the purchase price, up to $7,500. Single taxpayers with modified adjusted gross income up to $75,000 and couples with MAGI up to $150,000 will qualify for full credit. Singles with MAGI up to $95,000 and couples with MAGI up to $170,000 will get a reduced amount. Those with higher incomes don’t qualify. If the amount of tax a homebuyer owes is less than the amount of the credit, they get to keep the difference in the form of an IRS refund. The homebuyer must begin to repay the credit in two years in increments of about $500 a year over a 15-year period for those who received the full credit Homebuyers who sell their home before the credit is repaid must pay off the loan with any profits. If they sell the home at a loss, the loan is forgiven.

[Editor's Note: The credit is set to expire in mid-2009, although industry groups, including the NATIONAL ASSOCIATION OF REALTORS®, are encouraging Congress to extend it. NAR is also encouraging Congress to make the credit available to all buyers and to eliminate the repayment requirement. More detail on how the credit works is available from NAR on REALTOR.org.] Source: Chicago Tribune, Mary Umberger (12/28/2008)

Absolutely exciting! I've been planning to blog for close to a year, probably longer if I put my pencil to the calendar. Now that I've stepped in the door, I know I've arrived to the internet. While I have always felt computer savvy, the idea of giving & posting information rather than just using the internet for my every means is remarkable. I must say, I feel as though I do have a wealth of information to share with many people. I'm really looking forward to sharing with everyone; I'm certain there is a lot to be learned.

Some topics I plan on blogging on in the future:

The Oklahoma Landlord & Tenant Act

First Time Buyer Programs

FHA Loans in Oklahoma

Hot Neighborhoods in Oklahoma City

Favorite Oklahoma City Hot Spots

Oklahoma Shopping & Dining

Sports, I love sports especially in Oklahoma. Which leads me to GO SOONERS! I am so excited about our #2 spot, I especially love that we beat Texas out & will be playing in the Big 12 championship!

That's all for today! Have a wonderful December.... there is definitly a new air blowing in.

Always Aspiring, Jennifer Arsenault