Clarification of the Buyer’s Credit Being Offered
The recently passed housing bill has a provision in it that 1st time homebuyers a tax credit of 10% (up to $7500) of the purchase price in the form of a tax credit. What this means is that any first time homebuyer who purchases a home between April 9, 2008 and July 1, 2009 is eligible to receive this credit on their 2008 Tax Return. This $7500 IS NOT a grant to be used for closing or down payment, you will not be receiving any funds from the federal governemnt. It is a tax credit towards their next tax return that you file. As an example, if a client has a tax liability of $10,000 for 2008 they will get a $7500 tax credit / tax refund and will only owe $2,500 in taxes for the year. There is no way to get this money earlier then when they file their 2008 tax returns.
Additionally, after receiving this tax credit, the homebuyer then has to repay the $7500 over the next 15 years. Meaning what,you may ask? This means that they will have an additional tax liability for each subsequent year of $500 for the next 15 years.
If you have any other question, please feel free to give me a call at 609-417-1086.
Terry Iwaniw
REALTOR Associate
RE/MAX Home Team
Laurel Springs, NJ
http://www.snewjerseyhomes.com/
http://www.i-teamhomes.com/
609-417-1086
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[...] are many ambiguities in the marketplace. “The economy is producing more, yet cutting jobs. A first-time home buyer tax credit and lower interest rates on newly conforming jumbo loans favors consumers, yet buyer confidence [...]