First Time Homebuyers can be
helped by the newly signed Housing and Economic Recovery Act of 2008
in the form of a tax credit of $7500.
This credit is
available to first time homebuyers (this includes anyone who has not
owned a principle residence for the past 3 years) and who's modified
adjusted gross income falls below certain limits ($75000 for an
individual or $150000 for a couple.) The tax credit will be a
direct deduction of the amount of tax you owe for the year it is
claimed. You should contact an accountant for exact
interpretation of this law. What a great help this
would be in that first year of adjusting to owning a home.
It is my understanding that the tax credit will need to be paid back so
it is not a grant but more of an interest free loan. You will
begin repaying the credit two years after you take it. Your
$500 per year payments will be due with your income tax return and will
continue until you sell the house or pay off the credit. If
you sell before the full amount is paid off you will
owe the rest of the credit back if you sell at a profit.
If you do not make any money on the sale the remainder of
this credit will be forgiven.
You
must purchase a home before July 1, 2009 so you really should
get moving. This is a great reason to consider going ahead
with the
purchase of that new home! I know a lot of you have been
hesitating
with the uncertainty of the market but I would not want you to miss out
on this opportunity. Inventory of available homes are up,
interest rates are still low, and it is a buyer's market.
For more information on what this can mean to you please contact me.
Working
with an experienced buyer's agent can
help you to choose what is best for you. If you are looking
for a home in Orange, Ulster, or Sullivan County NY I would love to be
your Buyer's Agent. If you are looking elsewhere I would love
to find someone in your chosen location to help you. Give me
a call or send an email today.
I'm Paddy Pizappi - Work
the Me and You'll be Happy!
845-800-7086
;)
;)
;)
Hi Paddy,
Great news, you are way ahead of me. I just say the act however haven't read it as yet.
Thanks for the heads up....will spend some time reviewing the benefits for prospective clients.