Understanding the Home Buyers TAX Credit

By
Real Estate Agent with Berkshire Hathaway HomeServices Abbott Realtors

Recently changes have been made to tax laws based on the Economic Recovery Act of 2008. Because of this change --- first time homebuyers can take advantage of a large tax break. The tax credit is equal to 10% of the purchace of your home up to $ 7,500.

This credit is available for singles who make up to $ 75,000 and for married couples filing jointly the credit is available for those earning up to $ 150,000. Now this money is not yours to keep, per say...it does have a payback provision. This payback is similar to an interest FREE loan. If you qualify for the full amount --- it would mean paying back approximately $ 500 per year.

For more information about the implications of the new tax credit --- call your tax professional. Or, ask your realtor for a referral. There is a FREE brochure that is available from the National Association of REALTORS --- just call your LOCAL realtor and request a copy.

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