By Jeff Geoghan for Coldwell Banker

The Housing Recovery Bill enacted in July 2008 addressed first-time buyers of primary first residences purchased between April 9^th and December 31^st, 2008.  If you fall into this time frame, it’s important that you are aware of the tax incentives available with your 2008 return.

Here’s a summary of the program:

• Tax Credit Amount - $7,500

• Eligible Properties – All homes eligible as long as used for primary residence.

• Refunds Applicable? – YES.  If credit exceeds your net tax liability for 2008 or 2009 (you choose which), then you will get the difference as a tax refund in addition to your regular refund.

• Income Limits – Full amount of credit for individuals up to $75,000 ($150,000 for joint filers).  The amount of credit phases out with incomes over $95,000 for individuals and $170,000 for joint filers.

• Time Limits – Buyers may not have owned a primary residence for at least 3 years prior.

• Repayment? – YES.  A portion of the credit (6.67% or $500) to be repaid each year for 15 years, starting with the 2010 tax returns.

• What If I sell? – If the home is sold before the 15-year repayment period ends, then the outstanding balance of the repayment amount is owed in that tax year.

Unfortunately, the 2009 Recovery and Reinvestment Act made this program better in several ways – see my article on the 2009 Housing First-Time Tax Incentive Program.  Even still, if you qualify for the 2008 program you will see some nice tax advantages.  Be sure to retain professional tax help for your 2008 return (Turbotaxers, this means you!).  If you already filed for 2008, contact your tax professional to file an amended return before April 15^th.

Contact Ron Felpel, President of Home National Mortgage (717-735-8234), for more specific loan qualification info and the latest Lancaster PA mortgage rates.  

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Coldwell Banker Select Professionals, based at 1000 North Prince Street in Lancaster and with additional offices in Lebanon, Hershey & York can be reached at 717-735-8400 or at www.cbselectpros.com. Coldwell Banker Select Professionals serves the Lancaster PA real estate, York PA real estate, Hershey PA real estate, Harrisburg PA Real Estate, Lebanon PA real estate markets with local offices and agents.

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