$8000.00 Home-Buyer Tax Credit Summary

$8000.00 Home-Buyer Tax Credit Summary

Go get your $8.000 15-year interest free loan from the government

Tax credit offered to new homebuyers

Expires June 30, 2009!

 

  1. Who is eligible?
    • First-time homebuyers or any homebuyers who have not owned a principal residence in the last three years
  2. How does it work?
    • Eligible purchasers can claim the $8.000 credit on their annual tax return form.

·        Amount of credit: 10% of cost of home or a maximum of $8.000

  1. Repayment:
    • Two years after the credit is claimed, the homebuyer will have to start paying it back.
    • 15 equal annual installments will have to be paid back to the IRS every year.

·        6.67% of the borrowed amount or a maximum of $502

    • If home is sold before 15 years, the remainder of the loan will have to be repaid to the IRS upon the sale.

·        Part of the liability can be forgiven if the gain on the sale is less than the amount of the loan.

  1. Restrictions:
    • Home purchase time limit:

·        Homes purchased on or after April 9, 2008 and before July 1, 2009

    • Home must be a single family residence (including condos, coops) that will be used as a principal residence.
    • Home must be located in the United States.
    • Home cannot be financed through mortgage revenue bonds.
    • Income restriction:

·        To qualify for full $8.000 credit, the taxpayer must make no more than

a.       $75,000 for single returns

b.      $150,000 for joint returns

·        To still qualify for credit but at a lesser amount, the following income caps apply

a.       $95,000 for single returns

b.      $170,000 for joint returns

 

For more information on the tax credit:

http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf

http://www.federalhousingtaxcredit.com/faq.php

OR contact us directly: larkin@gostgeorge.com

Contact Information

Photo of Jeremy Larkin - The Larkin Group Real Estate
Jeremy Larkin - The Larkin Group
Keller Williams Realty
50 E 100 S, Suite 300
St. George UT 84770
435.767.9886
Fax: 435-359-5085

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