New 1st Time Buyer Tax Credit

DebOnTheWeb — Fri, 08 Aug 2008 19:48:47 +0000

One of the provision of the new housing bill that was just passed is a tax credit for first time home buyers. Here are the basics:

You must not have owned a home for the last 3 years

The credit is $7,500 (this is a tax credit, not a tax deduction, so you take what you owe the IRS and subtract $7,500

You must buy a house on or after April 9, 2008 and before July 1, 2009

To get the full tax credit, single people must make no more than $75,000 and married couples no more than $150,000

Now here’s the not as good news. . . you must pay the credit back, so it’s basically a zero interest loan. The better news is your payments begin in the 2nd year after you buy the house and you have 15 years to pay back the loan (which comes out to $500 per year).

Please speak to your tax preparer regarding how this tax credit will affect your tax situation.

Medford, MA Homes for Sale – Deb on the Web » housing bill

New 1st Time Buyer Tax Credit