Am I eligible?
If you have not owned a home in
the past three years, you may qualify. (That’s right, even if
you or your spouse owned a home more than three years ago, you
are still considered first-time homebuyers and may qualify for
the tax credit.) For additional eligibility requirements,
visit
FederalHousingTaxCredit.com.
Am I entitled to the full $7,500 tax credit?
It depends on the price of your
home and your modified adjusted gross income (MAGI). The
credit amount is 10 percent of the home’s purchase price, not
to exceed $7,500.
To receive the
maximum tax credit of $7,500, you must have a modified
adjusted gross income below $75,000 for individuals (or
$150,000 for joint filers). If that excludes you, take note:
There is a reduced tax credit available for individuals with a
modified adjusted gross income up to $95,000 (or $170,000 for
joint filers).
What is a tax credit?
A tax credit is a reduction in
the taxes that you owe. It’s different from a tax deduction,
which only reduces the amount of your income that is subject
to tax.
How does the credit work?
The credit acts like a loan from
the government and must be repaid. The good news is that you
don’t have to pay interest, and you can make equal
installments over 15 years.
Or, if you sell
your home before then and see a gain, you have to repay the
government then. Importantly, though, if you don’t see enough
gain to cover the remaining balance of the tax credit, the law
allows that the balance will be forgiven by the government.
(As with all tax matters, you should consult with a tax
advisor about your specific circumstances.)
What does it mean that the credit is refundable?
If your eligible tax credit is more than what you owe in
taxes, the balance will be refunded to you. (See an example
scenario at
FederalHousingTaxCredit.com.)
How long does the program last?
The tax credit applies to homes
purchased (closed) on or after April 9, 2008, and before July
1, 2009.
That means you can
still qualify for the homebuyer tax credit retroactively if
you have purchased a home since April 9, 2008.
How can Professional Property Buyers help?
We currently have an
inventory of Homes for Sale.
We also have a selection of homes which we are also offering
Owner Financing.
Both Homes for Sale and Owner Financed Homes qualify for the
Federal Housing Tax Credit.
We like to think
that we offer better ways to buy a home. And with offers like
the first-time homebuyer tax credit, this is a great time to
buy. We are
dedicated to assisting everyday people just like you realize
their dream of home ownership.
For additional
details on the federal tax credit, visit
www.FederalHousingTaxCredit.com.
Don’t miss out -
visit a Professional Property today to take full advantage of
this unique opportunity!
