First Time Homebuyer Tax Credit
First Time Homebuyer Tax Credit
Attention First Time Home Buyers:
President Bush signed a major housing bill (H.R. 3221) into law. As part of the housing bill, congress has created a new, temporary tax credit to provide an incentive for first-time home buyers. The $7500 credit will be available for the purchase of a principal residence on or after April 9, 2008 and before July 1, 2009.
What does this mean to you?
Well, if you purchase a principal residence in the next 11 months, or in the past 4 months you become eligible to borrow up to $7500 from the Federal Government. You will have 15 years to pay back this interest free incentive. To apply for the tax credit, simply claim the credit on your next tax return.They haven’t worked out the details of “How” the money will be paid back yet. But if you take advantage of the full $7500 credit, the payment would be around $500 per year. If you sell your house before the 15 year period expires, any amount of the credit that has not been repaid will become due.
If you have been sitting on the fence, watching the market, waiting for the right time to buy…………..
This is it.
Buying your first home is a very stressful experience. Most first time home buyers, have to skimp and save every possible penny they can to get into their First Home. Things are normally very tight the first couple of years. This Tax Incentive could be put to some good use.
Unlike a home equity loan, this credit is not based on your income to debt ratio or the amount of equity left in your home.
Please consult your tax advisor with questions about using this new Tax Credit.
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