1st Time Home Buyer Tax Credit!

First Time Homebuyer Credit

Friday, August 08, 2008

by The Applegate Team

Here is an article that I came across highlighting how the First Time Homebuyer Tax Credit works. Your home is your biggest investment and I think this article brings light to one of the many advantages of doing so. And of course, we all need a break when it comes to paying "Uncle Sam"!!

Christy

Daily Real Estate News August 4, 2008

Under the new housing bill, home buyers who have not owned a home in the last three years will be eligible for a tax credit equal to 10 percent of the property up to a maximum of $7,500.Here’s how it works:
The credit is $3,750 for married couples filing separately. Unmarried people who jointly purchase a home will be able to divide the $7,500 credit.
This program is actually a loan, which home buyers must repay over 15 years at zero percent interest beginning in the second year after they purchase the home. A home buyer who qualified for the whole credit would pay $500 for 15 years or about $41.67 per month.
The credit applies only to homes purchased on or after April 9, 2008, and before July 1, 2009.
High-income home buyers don’t qualify: Eligibility begins phasing out for single filers with adjusted income of more than $75,000 and $150,000 for joint filers. It completely phases out at $95,000 for singles and $170,000 for married couples filing jointly.
Source: The Washington Post, Michelle Singletary (07/03/08)