Posted by :

CJ Harrington

Keller Williams Realty

www.kw.com

www.cjharrington.com

cjharrington.crs@gmail.com

440.336.0612

12-16-08

The government is now offering a $7500 tax credit to new homebuyers that Expires June 30, 2009!

This acts as a write off on your annual taxes and is interest free.  Still, this is a loan and must be paid off within 15 years.

 Who is eligible?

• First-time homebuyers or any homebuyers who have not owned a principal residence in the last three years

How does it work?

• Eligible purchasers can claim the $7,500 credit on their annual tax return form. 
•  Amount of credit: 10% of cost of home or a maximum of $7,500

Repayment:

• Two years after the credit is claimed, the homebuyer will have to start paying it back.
• 15 equal annual installments will have to be paid back to the IRS every year. 
•    6.67% of the borrowed amount or a maximum of $502 
• If home is sold before 15 years, the remainder of the loan will have to be repaid to the IRS upon the sale.
•    Part of the liability can be forgiven if the gain on the sale is less than the amount of the loan.

Restrictions:

• Home purchase time limit:
• Homes purchased on or after April 9, 2008 and before July 1, 2009 
• Home must be a single family residence (including condos, coops) that will be used as a principal residence.
• Home must be located in the United States.
• Home cannot be financed through mortgage revenue bonds.
• Income restriction:
•  To qualify for full $7,500 credit, the taxpayer must make no more than

            $75,000 for single returns

            $150,000 for joint returns

  To still qualify for credit but at a lesser amount, the following income caps apply

            $95,000 for single returns

           $170,000 for joint returns

For more information on the tax credit:

http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf

http://www.federalhousingtaxcredit.com/faq.php

Or if you would like to speak to a professinal...

Please visit our website at www.cjharrington.com for FREE information.

-Buy a Home With Little Money Down
-FREE Seller Reports-Sell Your Home Fast And For Top Dollar
-FREE Buyer Reports-Get The Most Home For Your Money
-FREE Home Value - Report & Evaluation
-Find Out What The House Down The Street Sold For
-And much more...