Admin

Housing and Economic Recovery Act of 2008

By
Real Estate Agent with RE/MAX Excalibur BR557263000

Last Friday morning,at our weekly RMS Realtor meeting, we had a panel of local mortgage brokers and real estate brokers discussing and taking questions on the new H.R. 3221.  It was obvious to me that most people don't seem to know a whole lot about it!  So, I've done a little research and bill give you some of the key points to know.  Then, I would love to hear from you with any questions you may have.  This ought to force me to get to know it pretty well!

  • First-time Homebuyer Tax Credit - 10% of cost of home not to exceed $7500.
  • Purchase on or after April 9th, 2008.
  • Any single-family, principal residence (including condo's) are eligible.
  • Reduces income tax liability for the year purchased.
  • Income limit of $75,000 single and $150,000 on a joint return.
  • Purchaser (and spouse) may not have owned a principal residence in the previous 3 years.
  • 6.67% of credit ($500) to be repaid each year for 15 years.
  • Terminates July 1st, 2009.

I look forward to hearing from you!

Lisa Murray

Show All Comments Sort:
Anonymous
Steve

I've heard that this is going to have an effect on Capital Gains.  Do you know aything about that?

Steve

Aug 18, 2008 01:13 PM
#1
Lisa Murray
RE/MAX Excalibur - Fountain Hills, AZ
Experience You Can Trust!

Hi Steve,

From what I understand, if you have an investment property that you want to convert to a primary residence, instead of being entitled to $250,000/$500,000 if you lived in the properety for 2 of the last 5 years. Not any more. Now that exclusion is calculated by taking the capital gains on the sale of the home and multiplying it by a ratio (percentage) of how long you lived in the home and how long you owned the home.

Aug 22, 2008 01:23 AM