$7,500 Home Buyer Tax Credit

The U.S. House of Representatives recently passed the American Housing Rescue and Foreclosure Prevention Act bill. In that bill there’s a provision that will help to spur home buying by targeting first time home buyers. A first-time homebuyer can take advantage of a refundable tax credit that works like an interest-free loan of up to $7,500. A first time home buyer is classified as someone who hasn’t owned a home in the pass three years.

 

To qualify for the tax credit:

 

• A homebuyer needs to have purchased a home on or after April 9, 2008 and before July 1, 2009.
• A single homebuyer needs to have an income of up to $7,500 to qualify for the full tax credit
• A married couple needs to have an income of up to $150,000 qualify for the full tax credit
• The interest free loan must be repaid over a 15 year period

For more specific questions, I encourage you to consult with a qualified tax advisor about your specific situation, or go to Federal Housing Tax Credit for more information.