For homebuyers who are eligible for the First-Time Home Buyer Tax Credit, purchasing a new home before filing 2008 taxes will result in the fastest payback. Homebuyers who have not owned their primary residence in the last three years may be qualified to receive the credit.
The First-Time Home Buyer Tax Credit provides a tax credit of up to $7,500 for homes purchased between April 9, 2008 and June 30, 2009. Buyers who purchase their homes in 2009 may elect to treat the purchase as if it occurred on December 31, 2008, so they may receive their tax credits earlier.
Homeowners who meet annual income requirements (up to $90,000 for single and $170,000 for married can receive partial credits) will receive 10 percent of the price paid for their homes back as a tax credit, up to $7,500. After two years, recipients will begin to pay back the credit as a no interest loan over the course of 15 years. For example, homebuyers who receive a $7,500 tax credit with their 2008 filings will begin paying back the government $500 a year beginning in 2010. For most homebuyers, “paying back” will not require an extra payment to the government; rather it will mean a reduction in their annual tax refunds. For more information on the tax credit, visit www.federalhousingtaxcredit.com.
Labels: 2008, federalhousingtaxcredit.com, first time home buyer tax credit, new homebuyers, tax credit
# posted by
Brian Vanderhoff @ 9:39 PM
