A First Time Homebuyers Window of Opportunity
August 28, 2008
There has been lots of press about the various incentives that are contained in the housing bill passed by congress in July 2008.Mentioned most frequently is the $7500 tax credit for first time homebuyers. What really will a first time homebuyer receive and when?
1) A tax credit of 10% of the cost of the home but not to exceed $7500. Thus, if the home you purchase costs $350,000, you would receive a tax credit of $7500 since you can not receive more credit than that amount. In all probability in the Inland Southern California market area, most purchases would be eligible for the maximum $7500 credit.
2) To be considered a "first time homebuyer" you may not have owned a principal residence in the past 3 years.
3) Any single family residence (including condos) that will be the buyers principal residence will qualify.
4) A buyer's income can not exceed $75,000 adjusted gross income or $150,000 on a joint return.
5) This program is available for home purchases on or after April 9, 2008 and will terminate on July 1, 2009.
6) The tax credit is not a gift, but is to be repaid over a 15 year period. However, this "loan" does not require any interest payment - just the repayment of the tax credit at an anticipated rate of $500 per year during the 15 year period. (I suspect that the IRS has not yet figured out exactly how the repayment will be made. By the time you file your 2008 tax return guidelines for claiming it should be in place.)
If you are wanting to own a home, taking advantage of this window of opportunity would be in your best interest.
There has been lots of press about the various incentives that are contained in the housing bill passed by congress in July 2008.Mentioned most frequently is the $7500 tax credit for first time homebuyers. What really will a first time homebuyer receive and when?
1) A tax credit of 10% of the cost of the home but not to exceed $7500. Thus, if the home you purchase costs $350,000, you would receive a tax credit of $7500 since you can not receive more credit than that amount. In all probability in the Inland Southern California market area, most purchases would be eligible for the maximum $7500 credit.
2) To be considered a "first time homebuyer" you may not have owned a principal residence in the past 3 years.
3) Any single family residence (including condos) that will be the buyers principal residence will qualify.
4) A buyer's income can not exceed $75,000 adjusted gross income or $150,000 on a joint return.
5) This program is available for home purchases on or after April 9, 2008 and will terminate on July 1, 2009.
6) The tax credit is not a gift, but is to be repaid over a 15 year period. However, this "loan" does not require any interest payment - just the repayment of the tax credit at an anticipated rate of $500 per year during the 15 year period. (I suspect that the IRS has not yet figured out exactly how the repayment will be made. By the time you file your 2008 tax return guidelines for claiming it should be in place.)
If you are wanting to own a home, taking advantage of this window of opportunity would be in your best interest.
posted by shirley harry at 7:50 AM
0 Comments:
Post a Comment
<< Home