Special offer

Housing and Economic Recovery Act of 2008

By
Real Estate Agent with RE/MAX Excalibur BR557263000

Last Friday morning,at our weekly RMS Realtor meeting, we had a panel of local mortgage brokers and real estate brokers discussing and taking questions on the new H.R. 3221.  It was obvious to me that most people don't seem to know a whole lot about it!  So, I've done a little research and bill give you some of the key points to know.  Then, I would love to hear from you with any questions you may have.  This ought to force me to get to know it pretty well!

  • First-time Homebuyer Tax Credit - 10% of cost of home not to exceed $7500.
  • Purchase on or after April 9th, 2008.
  • Any single-family, principal residence (including condo's) are eligible.
  • Reduces income tax liability for the year purchased.
  • Income limit of $75,000 single and $150,000 on a joint return.
  • Purchaser (and spouse) may not have owned a principal residence in the previous 3 years.
  • 6.67% of credit ($500) to be repaid each year for 15 years.
  • Terminates July 1st, 2009.

I look forward to hearing from you!

Lisa Murray

Anonymous
Steve

I've heard that this is going to have an effect on Capital Gains.  Do you know aything about that?

Steve

Aug 18, 2008 01:13 PM
#1
Lisa Murray
RE/MAX Excalibur - Fountain Hills, AZ
Experience You Can Trust!

Hi Steve,

From what I understand, if you have an investment property that you want to convert to a primary residence, instead of being entitled to $250,000/$500,000 if you lived in the properety for 2 of the last 5 years. Not any more. Now that exclusion is calculated by taking the capital gains on the sale of the home and multiplying it by a ratio (percentage) of how long you lived in the home and how long you owned the home.

Aug 22, 2008 01:23 AM