First Time Home Buyer Tax Credit 2008-2010
Are you a first time home buyer? Did you know the government is offering a tax credit up to $7500 or $8000 depending upon when your purchase was completed?
A First Time Home Buyer Tax Credit was first offered to those who had purchased a home after April 9, 2008 and before July 1, 2009 and who had not purchased a home before. Depending upon your income, you could qualify for a tax credit of 10% of the cost of your home purchase up to $7500. When you filed your income tax return, if you were eligle for the full tax credit and your tax bill was less than $7500, you would receive a tax refund for the difference.
This benefit was not completely a gift from the government. It was an interest free loan that must be repaid within 15 years, beginning two years after you received the credit. If, however, you sold the home at a loss before the full amount had been repaid, you would not have to payoff the balance of the loan. If you sell the home at a profit, then the loan will be repaid in full at closing.
This tax credit has now been revised for those first time home buyers who purchase homes between 1/1/2009 and 4/30/2010. The credit amount has been increased to a maximum of $8000 and does not have to be repaid. Additionally, you may apply for the tax credit on your 2008 tax return if you close your purchase before filing your return. If your purchase was completed before 1/1/2009, unfortunately your credit is dictated by the previous rules and the credit must be repaid.
There are a few requirements that a buyer must meet to qualify for this credit. Please contact me at Linda@MauiSeasideHomes.com or 808-283-2372 to obtain additional information or go to this website: http://www.federalhousingtaxcredit.com/faq1.php
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