Which First Time Home Buyer Tax Credit is for You?

By
Real Estate Agent with Metro First

The $7,500 VS $8,000 Tax Credit

 The two tax credits available for first time home buyers today are the $7,500 tax credit of 2008, and the new $8,000 tax credit of 2009. Depending on when you buy or bought your home is the only difference in which credit is available to you.

If you purchased your home between April 2008 and December 2008, then you qualify for the $7,500 tax credit. The only drawback is that this credit will need to be paid back over the next 15 years.  It works like an interest free loan.

Qualifying home buyers that bought their homes after January 1, 2009 will have the $8,000 tax credit available to them. Thankfully this one will not have to be repaid!  A reduced amount of the tax credit may still be available to those whose annual income is over the qualifying limits yet under $95,000 for single persons and $170,000 for married couples.

What does this mean to you? The Government is attempting to stimulate our economy by increasing the potential buyer pool. Do remember that these tax credits are only equal to 10% of the purchase price and max out at the full specified amount. So should 10% of the amount you buy your home for be less than the full tax credit amounts, you will not be seeing the entire $7,500 or $8,000. Also that you first and foremost need to be sure you qualify as a first time home buyer within the limitations to claim them on your tax returns.

Our local economy is still going strong!

          According to Forbes, Oklahoma City was named as the #1 recession proof market in the nation.  With all of the bad news on the television it is nice to know that not all of it is applicable to the OKC market.    We're only sayin' You're doin' fine, Oklahoma! Oklahoma - O.K L A H O M A - Oklahoma OK!

 

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