Housing and Ecominic Recovery Act Helps First Time Home Buyers
Here’s the basics:
Act is effective April 9, 2008 thru July 1, 2009
Eligible property: Any single family residence (including condos and co-ops) that will be used as primary residence.
Refundable:Yes- Reduces income tax liablility for the year of purchase. Claimed on tax return for that tax year.
Income Limit: Yes- Full amount of credit available for individuals with adjusted gross income of no more that $75,000 ($150,000 on joint return) Phases out above those caps ($95,000 and $170,000 respectively)
First Time Home Buyers Only- Yes- Purchaser (and purchaser’s spouse) may not have owned a principle residence in the 3 year previous to purchase.
Recapture: Yes- Portion (6.67 percent of credit) to be repaid each year for 15 years. If home sold before 15 years, then the remainder of credit is recaptured on sale.
Effective date: Purchaes on or after April 9, 2008
Termination: July 1, 2009
Contact a Prudential Floberg REALTOR for more information about how this program can work for you.
A more detailed explaination of the Act can be found on REALTOR.org.
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