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GREAT NEWS FOR FIRST TIME HOME BUYERS!

Reblogger Donna Taylor
Real Estate Agent with Meybohm Realtors, Downtown Aiken

All of us should make first time home buyers aware of this.

 

Original content by Marvelous Mary Novak

CHECK IT OUT!  FIRST TIME BUYER - TAX CREDIT

As part of the Housing Stimulus Bill, Congress created a tax credit for first time buyers who purchase a home prior to July 1, 2009

What is the tax credit? Eligible tax payers will receive a "refundable" credit of up to $7,500 or 10% of the purchase price of their home, whichever is less.

Who is eligible? Any person who has not owned a principal residence in the three years prior to closing and meets the income limitations $75,000 individual and $150,000 for married couples. Also 95,000 individual and $170,000 married can receive a partial credit.

How do I qualify? Meet the definition of "first time buyer" you must purchase and close on a home prior to 7/01/09. Homes, condominiums and manufactured homes qualify.

How do I get the money? You will receive a credit against your 2008 or 2009 Federal income Tax. It will reduce your tax bill and increase the amount of your refund.

Do I have to pay the money back? Yes - but not immediately. The credit is really an interest free loan for up to 15 years. The credit must be repaid at a rate of 6.67% per year starting two years after the purchase. Unpaid balance due at time of sale.

You could actually pay the full $7,500 by increasing your Federal withholdings by $20 per paycheck.

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