Real Estate Blog for Catherine McKendry, Turnersville, NJ
Have a Real Estate Question for Catherine? E-Mail me at : CMCKSALES@AOL.COM
Mortgages-HOUSING AND ECONOMIC RECOVERY ACT OF 2008
September 06, 2008 Guidelines for Recovery Act 2008 for First Time Home Buyers
Catherine McKendry
Weichert Realtors
856-404-5222
HOUSING AND ECONOMIC RECOVERY ACT OF 2008
First-time Homebuyer Tax Credit
FEATURE H.R. 3221
Housing and Economic Recovery Act of 2008
Amount of Credit Ten percent of cost of home, not to exceed $7500
Eligible Property Any single-family residence (including condos, co-ops) that will be used as a principal residence.
Refundable Yes. Reduces income tax liability for the year of purchase. Claimed on tax return for that tax year.
Income Limit Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000, respectively).
First-time Homebuyer Only Yes. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase.
Recapture Yes. Portion (6.67 % of credit) to be repaid each year for 15 years. If home sold before 15 years, then remainder of credit recaptured on sale.
Impact on District of Columbia Homebuyer Credit DC credit not available if purchaser uses this credit.
Effective Date Purchases on or after April 9, 2008
Termination July 1, 2009
Interaction with Alternative Minimum Tax Can be used against AMT, so credit will not throw individual into AMT.
If you have any questions and are interested in a home purchase please call me at 856-404-5222 to set up an appointment to discuss financing of your new home.
Or E-mail me at CMCKSALES@AOL.com
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