The nation's real estate market is on the brink of slow, but steady improvement! In an attempt to propel the market back to regular activity, the government has issued a tax credit that will act as a catalyst for housing recovery. And everything starts with the first-time homebuyer!
The Housing and Economic Recovery Act of 2008 issued a First-time Homebuyer Tax Credit for individuals who have purchased or plan on purchasing a home between April 9, 2008 and July 1, 2009. Tax credits have been an incentive for first-time Washington, D.C. homebuyers for a while, but this stimulus is now being offered nationwide. In terms of eligibility, the NAR states, "If you (and your spouse, if married) have not owned your principle residence for a 3-year period before your purchase, and you have never taken advantage of the DC first-time homebuyer credit, you qualify as a first-time homebuyer."
The Homebuyer Tax Credit is fairly substantial-it's equal to 10 percent of the purchase price of your home up to $7,500. As a tax credit, this amount will be deducted from the total amount of taxes you owe. Acting as something similar to an interest-free loan, this credit is expected to be repaid over a set period of time. For more information on the Homebuyer Tax Credit, click here. If you're interested in participating in this limited-time program, contact a certified agent today!
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