The housing bill passed by Congress in late July 2008 is great news for home buyers. If you have not owned a home in the 3 years prior to purchase, the Housing Stimulus Bill (H.R. 3221) essentially gives you a $7,500 tax credit for any home, town home, or condominium purchase between April 9, 2008 and June 30, 2009.
The tax credit is basically an interest free loan from the government. If you are receiving money on tax day the $7,500 will be added to the amount you receive. If you owe money on tax day that money will be deducted from the $7,500 and you will receive the remainder.
The $7,500 credit is repayable at $500/year for 15 years. If your home is sold before the credit is paid back, the remaining money due is paid back at that time. If there is no profit or gain on the sale of the home then the remaining credit owed is forgiven.
The credit is limited to single or head of household taxpayers with an adjusted gross income of $75,000 or less, or married filing jointly with an adjusted gross income of $150,000 or less. A partial credit is available for taxpayers with adjusted gross incomes between $75,000 and $95,000 for single/head of household, and $150,000 and $170,000 for married couples.
For additional information you may find the following link helpful.
http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf
This is a great interest free loan that can save you thousands of dollars over 15 years.
Should you have any questions please feel free to contact me at (931) 801-8660 or cblack@realtracs.com. You may also visit my website at www.homeclarksville.com to view all homes for sale in the Clarksville TN area (MLS).
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