First Time Home Buyers In Marin: Federal Tax Cut Available!
Tax Credit for First Time Home Buyers
If interest rates being incredibly low weren’t incentive enough, the Federal government is providing up to a $7500 tax credit to first time home buyers!
To be eligible, you need to:
1. Not have owned your own home in the last three years.
2. Close on a house before June 30, 2009.
3. Have adjusted gross income below $150,000 for couples, and $75,000 for singles. Above those levels, the credit begins to phase down.
There’s more fine print (there always is) but essentially, under these conditions, you can qualify to take 10% of the purchase price, up to $7,500, as a credit against 2008 taxes. Even if you purchase in 2009, you can take the credit against 2008 taxes by filing an amended return.
The credit does need to be paid back, but can be done so over a 15 year period,starting in the second tax year after purchase. Over 15 years, the cost would be $500 a year. If you sell the house before the end of the repayment period, and there is no gain on the sale, you are not expected to pay the remainder of the credit from the proceeds.
So another way to look at this: it’s an interest free loan from the government, in which the principal is paid back over time, and the government is sharing the risk that the value of the home won’t increase over time.
We’re not accountants. Check with yours before you make any decisions on this, and how they would treat it. But do look into it! For more information, go to www.federalhousingtaxcredit.com.
Or give us a call - we’re happy to put you in touch with one of our excellent broker partners.
[…] Bob Ravasio wrote an interesting post today onFirst Time Home Buyers In Marin: Federal Tax Cut Available!Here’s a quick excerptSo another way to look at this: it’s an interest free loan from the government, in which the principal is paid back over time, and the government is sharing the risk that the value of the home won’t increase over time. … […]
[…] Original post by Marin Real Estate Insider […]
[…] Bob Ravasio wrote an interesting post today onFirst Time Home Buyers In Marin: Federal Tax Cut Available!Here’s a quick excerptWe’re not accountants. Check with yours before you make any decisions on this, and how they would treat it. But do look into it! For more information, go to www.federalhousingtaxcredit.com. Or give us a call - we’re happy to put you in … […]
[…] Bob Ravasio wrote an interesting post today onFirst Time Home Buyers In Marin: Federal Tax Cut Available!Here’s a quick excerptThere’s more fine print (there always is) but essentially, under these conditions, you can qualify to take 10% of the purchase price, up to $7500, as a credit against 2008 taxes. Even if you purchase in 2009, you can take the credit … […]
[…] Original post by Marin Real Estate Insider […]
[…] Bob Ravasio wrote an interesting post today onFirst Time Home Buyers In Marin: Federal Tax Cut Available!Here’s a quick excerptIf you sell the house before the end of the repayment period, and there is no gain on the sale, you are not expected to pay the remainder of the credit from the proceeds. So another way to look at this: it’s an interest free loan from … […]
[…] So another way to look at this: it’s an interest free loan from the government, in which the principal is paid back over time, and the government is sharing the risk that the value of the home won’t increase over time. .. Read more […]
[…] Bob Ravasio wrote an interesting post today onFirst Time Home Buyers In Marin: Federal Tax Cut Available!Here’s a quick excerptThere’s more fine print (there always is) but essentially, under these conditions, you can qualify to take 10% of the purchase price, up to $7500, as a credit against 2008 taxes. Even if you purchase in 2009, you can take the credit … […]
[…] Bob Ravasio wrote an interesting post today onFirst Time Home Buyers In Marin: Federal Tax Cut Available!Here’s a quick excerptThere’s more fine print (there always is) but essentially, under these conditions, you can qualify to take 10% of the purchase price, up to $7500, as a credit against 2008 taxes. Even if you purchase in 2009, you can take the credit … […]
[…] Bob Ravasio wrote an interesting post today onFirst Time Home Buyers In Marin: Federal Tax Cut Available!Here’s a quick excerptThere’s more fine print (there always is) but essentially, under these conditions, you can qualify to take 10% of the purchase price, up to $7500, as a credit against 2008 taxes. Even if you purchase in 2009, you can take the credit … […]