New $7,500 tax credit for first time home buyers

New $7,500 tax credit for first time home buyers
Realtors will find some welcome news in recently enacted federal housing legislation: your first time home buyers can get a $7,500 tax credit. Congress intends for the credit to make housing more affordable. But tell your customers to hurry - the credit is only available for purchases before July 1, 2009.
Here's how the tax credit works

• There are income limits: $75,000 for single purchasers, $150,000 for couples.
• The credit is not made to the buyer in the form of a check.
• Instead, the credit is an itemized deduction on federal tax returns (your buyers should consult with their tax advisor).
• It effectively reduces the purchase price by $7,500.
• The credit is limited to first time buyers.
• The credit must be repaid (at no interest) at the rate of $500 per year for 15 years.
• However, if the home is sold, the seller will not repay more of the credit than they realized in profit.

For more details contact Larry Weichman (714) 241-4532 or Visit www.TeamWeichman.com