HousesforsalestaugustineBlog

Thinking about buying your first home?   "NOW" is the time to take the    leap...and the credit!

Thank to the Housing and Economic Recovery Act od 2008, qualified first-time homebuyers are finally getting the credit they deserve: up to $7,500  for homes purchased and closed after April 9, 2008 and before July 1, 2009.

This limited-time offer - designed to help get the economy moving in the right direction - is an ideal way to get you and your family moving in the right direction, as well.

Below are answers to some of the most commonly asked questions about the First-Time Homebuyer Tax Credit:

Who is eligible for the $7,500 tax credit?

Any U.S. citizen who pays taxes and has not owned a home as his or her principal residence during the past three years is eligible for the tax credit . Married taxpayers qualify only if neither spouse has owned a principal residence in the past three years.

Are there income limits on claiming the credit?

If you file single or head of household and your adjusted gross income is less than $75,000, or if you are married and file jointly and your adjusted gross income is less than $150,000, you can claim the entire $7,500 credit. Single or head of household taxpayers who earn between $75,000 and $95,000 and married couples who earn between $150,000 and $170,000 are eligible for a  partial credit. The credit is not available for single taxpayers whose adjusted gross income is more  than $95,000 or for married couple whose adjusted gross income exceeds $170,000.

What type of homes qualify?

All new and existing single-family homes, townhomes and condominiums qualify for the tax credit, as long as the home will serve as principal residence and you have not owned a home in the past three years. A home constructed by a contractor on a lot your previously owned also qualified, as long as the closing on the home falls between April 10, 2008 and June 30, 2009.

Is it true that the credit must be repaid?

Yes. The tax credit is basically an interest-free loan to be paid back to the government over 15 years, beginning in the second year after you purchase the home. If you sell the home, the remaining credit amount would be due from the profit on the home sale: if there is insufficient profit, then the remaining credit payback would be forgiven.

When do I claim the tax credit?

If you purchase the home in 2008, the tax credit is taken on your 2008 return. If you buy in 2009, you have the option of taking the credit on either your 2008 or your 2009 tax return.

Feel free to contact me if you have additional questions:

                             Rossella Baron  904-599-09949