$7,500 Tax Credit for First-Time Homebuyers- Charlotte Real Estate

7500 tax credit for first time home buyers

The Housing and Economic Recovery Act of 2008 authorizes a $7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before July 1, 2009. Congress has set no limits on how many people can take the tax credit. It is expected to benefit hundreds of thousands of home buyers. There are no price limits, limits on location or condition of the home. What are the facts about the tax credit?

tax credit new home

1. Who is eligible for the tax credit?
The tax credit is only for first-time homebuyers purchasing new construction or existing homes. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009

2. Can I purchase an investment home as a first-time homebuyer? No, the home must be purchased as a owner-occupied principal residence home.

3. Do I have to pay back the tax credit? Unfortunately yes. Starting in the second tax year after purchase and continuing for up to 15 years, taxpayers are expected to make pro-rata repayments to the government on their federal filings. Over a 15-year payback period for the full $7,500 credit, the cost would be $500 a year.

4. Are there any income restrictions? Yes, there are income restrictions. Single or head of household status on a form 1040 are eligible for the credit if their income is less than $75,000.00. Joint return filers may not have a higher income than $150,000.

To find out how you can take advantage of the credit prior to filing your taxes and increase your monthly cash flow, download the following document provided by the National Association of Realtors 7500 tax credit for homebuyers