7,500 dollar tax credit for first time home buyers

Highlights

·         First time homebuyers who purchase a principal residence between 4-9-08 and 7-1-09 qualify for the tax credit.  (It’s retroactive for buyers who have already closed—great reason to contact them and let them know about the new benefit.)

·         The maximum credit is $7500 OR 10% of the purchase price if lower than a $75,000 sales price.

·         If home is purchased in 2009, homebuyer can elect to amend 2008 tax returns and claim a tax credit.

·         Tax credit is “Recaptured” by the IRS, and REALLY an interest-free loan and paid back evenly over a 15-year time period.  For instance, a $7500 “credit” is paid back at $500 per year. Homebuyers skip a year before payments start. OR - you can opt to pay back the $7,500 out of the proceeds when you sell your newly purchased home. If their are no gains, the debt is forgiven!

·         Always check  with an accountant to make sure this tax incentive truly works in your favor.

Who Doesn’t Qualify!

The following are not eligible for the tax credit:

·     Non-resident aliens

·     Buyers who finance home with tax-exempt mortgage bond programs

·     If property is disposed of before end of tax year

·     If property ceases to be principal residence before end of tax year

·     If property is acquired from a person who is related* to the homebuyer

·     *If modified Adjusted Gross income exceeds 95,000 (individual) or $170,000 (joint)

·     Credit phases out for individual Adjusted Gross Income of $75,000 – $95,000, and between

$150,000 – $170,000 for joint filers (Special rules apply for Washington D.C.)

Call Jake Lee 843-240-0431 to start looking for your first home today! Many laws have been put in place that make owning a home very adventagous for you! You can also visit www.SCRealEstatePartners.com to check a few homes out before you call to make your first (no-obligation) appointment!