There are a number of incentives currently to help First Time Home Buyers consider owning their first home. With the 2008 Housing Stimulus Legislation and the Tax Credit established for First Time Home Buyers buying between April 9, 2008 - July 1, 2009. The window of opportunity is small.
With the additional of Down Payment Assistance Programs locally supported by the Cities of Redding, Anderson and Shasta Lake and the declining market values in our local area, all these elements combine to provide attractive opportunity for First Time Home Buyers.
The $7,500 tax credit it available for First Time Home Buyers only and is defined as a Buyer who has not owned a home during the past three years. You must be a U.S. citizen. The home must be used as a principal residence.
Home Buyers who file as single or head-of-household taxpayers can claim the full $7,500 credit if their adjusted gross income (AGI) is less than $75,000. The price of the purchasesd property must be $75,000 or more to receive the full credit, otherwise the tax credit would be 10% of sales price.
For married couples filing jointly, the income limit doubles to $150,000. Single or head of household taxpayers who ear between $75,000 and $95,000 are eligible to receive a partial first-time home buyer tax credit.
Married couples filing jointly who earn between $150,000 and $170,000 are eligible to receive a partial first time home buyer tax credit.
The credit is not available for single taxpayers whose AGI is greater than $95,000 and married couples filing jointly with an AGI exceeding $170,000.
The tax credit is an interest-free loan that must be repaid over 15 years The minimum payment must be 15 equal annual installments. An example would be $7,500 tax credit would be $500 each year for 15 years. A Home Buyer must begin repaying the the loan two years after claiming the tax credit.
If the Home Owner sells the home for a profit and there is a remaining credit, then the homeowner is required to repay the remaining credit during the tax year of the home sale.
If you would like to learn more about owning your first home and taking advantage of the programs available to help you own your first home, we will be offering First Time Home Buyer Seminars. Call for details and registration. I would also be happy to talk with you about the programs available to you.
You can also find more information at www.federalhousingtaxcredit.com or www.irs.gov . This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice of any kind. Please consult with your tax professional for complete details.
I am Jeanean Gendron, your Redding and Shasta County Specialist. You can reach me at 530 276-7417. I answer my phone. Visit our website to learn more about Redding and Shasta County Real Estate.
