CHECK IT OUT! FIRST TIME BUYER - TAX CREDIT
As part of the Housing Stimulus Bill, Congress created a tax credit for first time buyers who purchase a home prior to July 1, 2009
What is the tax credit? Eligible tax payers will receive a "refundable" credit of up to $7,500 or 10% of the purchase price of their home, whichever is less.
Who is eligible? Any person who has not owned a principal residence in the three years prior to closing and meets the income limitations $75,000 individual and $150,000 for married couples. Also 95,000 individual and $170,000 married can receive a partial credit.
How do I qualify? Meet the definition of "first time buyer" you must purchase and close on a home prior to 7/01/09. Homes, condominiums and manufactured homes qualify.
How do I get the money? You will receive a credit against your 2008 or 2009 Federal income Tax. It will reduce your tax bill and increase the amount of your refund.
Do I have to pay the money back? Yes - but not immediately. The credit is really an interest free loan for up to 15 years. The credit must be repaid at a rate of 6.67% per year starting two years after the purchase. Unpaid balance due at time of sale.
You could actually pay the full $7,500 by increasing your Federal withholdings by $20 per paycheck.
Livingston County MI Rocks!
"Professionally Bringing Home Buyers & Sellers Together"
Comments(0)