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First Time Homebuyer Tax Credit
By Stephen Roberts | January 9, 2009
The government in an effort to stimulate home buying across the country has instituted a $7500.00 first time homebuyer tax credit. Most individuals are not aware of this incentive and it is relatively easy to qualify for. You don’t really have to be a first time homebuyer to qualify. As long as you haven’t owned a principal residence for at least the 3 previous years you will qualify. Full amount of credit is available for individuals with adjusted gross income of no more than $75,000 or $150,000 for couples filing jointly.
The credit is only available to buyers who purchased homes between 4/8/08-6/30/09. There is a repayment aspect to the credit that is complicated and should be discussed with your tax professional. The basics of the repayment are that beginning with your 2010 tax return you will pay back $500 a year. If you sell your home before completing your pay back, then you will need to pay back the remaining amount on your tax return the year that your home is sold.
For more information on this program click here.
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