How to help your friends and family?
Who is eligible to claim the $7,500 tax credit?
First-time home buyer (person who has not owned a home during the past 3 (three) years.
What are the Income Limits?
1. Home buyer who file as SINGLE or Head of Household and adjust gross income (AGI) is less than $75,000.
2. Married Couples filing joint return, income of $150,000.
3. Single or HOH income $75-95,000 can receive partial tax credit.
4. Married income $150-170,000 can receive partial tax credit.
What are the Effective Dates for Tax Credit?
To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.
Does the credit have to be paid back to the government?
Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.