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$7,500 Tax Credit for first time home buyers or those who have not owned a home in the last 3 Years!
Who is Eligible:
Income Limits:
An additional benefit of the program is that it's available to a huge segment of U.S. Taxpayers.
- Single or head-of-household taxpayers can claim the full credit if their adjusted gross income (AGI) is less than $75,000.
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Single or head-of-household taxpayers with an AGI between $75,000 and $95,000 are eligible to receive a partial tax credit.
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Married couples filing a joint return can claim the full credit if their adjusted gross income (AGI) is less than $150,000.
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Married couples filing a joint return with an AGI between $150,000 and $170,000 are eligible to receive a partial tax credit.
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Effective Dates of the Tax Credit:
Qualified Buyers would receive the applicable Tax Credit for the purchase of any home on or after April 9, 2008 and on or before June 30, 2009. The purchase must close and fund.
Tax Credit is Refundable:
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Refundable credit means - the amount of the credit is fully applied as tax paid. It reduces tax owed or increases refund as applicable.
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Example A: A buyer qualifies for the full credit and prior to the credit they would have a refund due of $2,000 on their Tax Return. The buyer would then receive a total refund of $9,500. The combination of the two.
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Example B: A buyer qualifies for the full credit and prior to the credit they would have owed $1000 on their Tax Return. In this case the buyer would now receive a refund of $6,500. The difference between the two.
Choice of Tax Year for Credit:
A potentially substantial benefit of the program is that the buyer may be able to choose the Tax Year in which they want to apply the Tax Credit.
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If the home is purchased in 2009, prior to the end of the program, the buyer may elect to apply the Tax Credit to either their 2008 Tax Return or their 2009 Tax Return...whichever they believe benefits themselves the most!
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If the home is purchased in 2008, the Tax Credit must be claimed on the buyer’s 2008 Tax Return.
Types of Homes which Qualify:
Here’s yet another major benefit not seen in other incentive programs. Just about eve
ry type of home and price range qualifies for the Tax Credit.
- New & Pre-Owned Homes
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New & Pre-Owned Townhomes
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New & Pre-Owned Condominiums
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Even 'Build-On-Your-Own' lot
Home Price Effects:
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The Tax Credit values, whether full or partial credits, are capped at 10% of the purchase price or $7,500 whichever is less.
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Example: a property bought for $62,000 has a maximum Tax Credit available of $6,200.
Payback Provisions:
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One should view this Program as an interest-free loan to be repaid over 15 years.
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An additional benefit is that the buyer does not start making the repayments until the 2nd Year after the Tax Credit is claimed.
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The Tax Credit and then repayments are made through the buyer’s Tax Returns annually… No separate checks and bills to keep up with!
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If the buyer sells the home prior to full repayment, the balance owed would be due from the proceeds/profit of the sale. If there is insufficient proceeds/profit, then the remaining balance of the Tax Credit payback would be ‘forgiven.’
Now is a great time to buy!
With all the negative news in our country right now I know it is scary to be thinking about buying a house. There are some great opportunities available to those of you who can afford to capitalize on the benefits of buying right now.
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Interest rate are very low.
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Yes, there are banks willing to loan money to those who are qualified.
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There is a decent amount of inventory to choose from.
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Many builders have great incentives right now.
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This tax credit.
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Buy Low...Sell High!
If you or someone you know could benefit from this exciting program and the benefits of buying a home in today's market then please give me a call.
Agents, if you would like this informatin in Microsoft Publisher format to use with your own branding as 3-fold printable brochure then send me an email Holt@Ebby.com
