$7500 First Time Homebuyer Credit

By
Real Estate Broker/Owner with Frank Rubi Real Estate, LLC La Broker 09995688826

$7500 First-Time Homebuyer
Tax Credit

  

 

Currently I am working with a Client who has been misinformed on how the $7500 first time homebuyer program works. I have highlighted this program below hopefully this will help.



PRO's

 

•A.      First time homebuyers who purchase a principal residence between 4-9-08 and 7-1-09 qualify for the tax credit.  (It's retroactive for buyers who have already closed-great reason to contact them and let them know about the new benefit.)

        

•B.      The maximum credit is $7500 OR 10% of the purchase price if lower than a $75,000 sales price.

                           If home is purchased in 2009, homebuyer can elect to amend 2008 tax returns and claim a tax credit.

•C.      Tax credit is "Recaptured" by the IRS, and REALLY an interest-free loan and paid back evenly over a 15-year time period.  For instance, a $7500 "credit" is paid back at $500 per year. Homebuyers skip a year before payments start.

•D.      Always advise your clients to check with an accountant to make sure this tax incentive truly works in their favor.

•E.       Purchase must not have owned a home in the last 3 years.

 

The following are not eligible for the tax credit:

 

•A.      Non-resident aliens

•B.      Buyers who finance home with tax-exempt mortgage bond programs

•C.      If property is disposed of before end of tax year

•D.      If property ceases to be principal residence before end of tax year

•E.       If property is acquired from a person who is related* to the homebuyer

•F.       *If modified Adjusted Gross income exceeds 95,000 (individual) or $170,000 (joint)

•G.      Credit phases out for individual Adjusted Gross Income of $75,000 - $95,000, and between

$150,000 - $170,000 for joint filers

 

 

Thinking of selling or buying a home in Southeast LA? Interest rates are at their lowest points in several years. With the choice of selection in this market inventory, you can be in a new home in a short amount of time. Interest rates, insurance premium appear to be settling down and lots of inventory to choice from now is the time to act. Want to purchase or sell your property in the River Parishes, Kenner, Metairie, Slidell, Arabi, Baton Rouge and Houma, Louisiana.
Contact me Frank Rubi or any member of Team7824, We will be happy to answer any questions and help you in this very important decision.  I will make your buying or selling experience stress free.

 

 Pick up the phone and call me at 504.319.9696or email us at rubi@7824.com. www.activerain.com/frankrubi   

Follow me on twitter: @frankrubi

 http://www.7824.com  

Frank Rubi, e-PRO, MBA, REALTOR®

 

 

 

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Rainmaker
625,146
Lindsey Hasford
Edina Realty - Elk River, MN
Bringing you home...

Great job at explaining the credit! It's so hard for buyers to understand the programs sometimes.

Oct 23, 2008 08:59 AM #1
Rainer
23,067
Louisiana REALTORS
Louisiana REALTORS - Baton Rouge, LA

Thank you for the explanation! I'm sure many will find this helpful.

Oct 24, 2008 01:33 AM #2
Rainmaker
67,074
Heather Goodwin
Licensed by the Louisiana Real Estate Commission - Shreveport, LA
Coldwell Banker Gosslee

Frank, nice explanation.  Do you know of any circumstances in particular that might be unfavorable tax-wise for a client?

Oct 27, 2008 01:08 PM #3
Rainmaker
563,891
Ken Tracy
Coldwell Banker Residential - Naperville, IL
Helping clients buy and sell since 2005

Hi Frank.  I have just checked out your blog through twitter.  I guess that means it works.

Ken

Dec 18, 2008 06:13 AM #4
Rainmaker
231,014
KARIN SMITH
SMITH REALTY GROUP - Slidell, LA
BROKER/REALTOR

Great information!  I agree -- contacting previous buyers to inform them of the retroactive tax credit would go a long way!!

Jan 22, 2009 12:45 AM #5
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