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First time buyers tax credit of $7500- From the Short Sale Specialists in Charleston, SC

By
Real Estate Agent with Chucktown Homes

Did you know that on July 30th 2008, President Bush passed a major housing bill into law? A portion of that housing bill created a temporary tax credit to entice first time buyers to purchase a home during this buyers market!! What other incentive would you need? Great prices...and the government is going to give you a $7500 tax credit!! This credit is available for the purchase of a principle residence between April 9,2008 and July 1, 2009. As always we are Real Estate experts, not tax advisors, so be sure to check with your tax expert to verify and weigh out the pros and cons of the tax credit for you.

To clarify...if after you entered all your taxes and exemptions, deductions, etc. you had a tax liability of $2000, you would get a tax credit of $5500.

First time buyers are defined as an individual who has not had an ownership interest in a principal residence in the previous three years. In addition, there is an income restriction. If single or head of household your income must be less than $75,000 and individuals who file a joint return must be under $150,000. There is a range above these numbers that will still allow you to receive a percentage of the tax credit.

The maximum amount of the tax credit is 10% of the sale price of the purchased home. In other words, a $65,000 home would qualify for $6,500...up to a maximum of $7500. This credit(loan) must be paid back...BUT...no interest and spread out over 15 years. Do you have any debt that incurs interest? My guess would be to pay that off and pay back the government at no interest.

As with everything...there are some ifs, ands, and buts about this tax credit and some important info about paying it back if you sell your home before the 15 years is up. I recommend you talk to your tax expert to get the details but be sure to ask as this can be a very important credit for you...and very helpful!!

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