News for Prescott AZ - AmericanTowns.com

Monday, January 19, 2009

HOUSING AND ECONOMIC RECOVERY ACT OF 2008

 

First‐time Homebuyer Tax Credit – Although not as great as it was advertized still might be a tool buyers need to look into.

 

FEATURE

H.R. 3221

Housing and Economic Recovery Act of 2008

Amount of Credit

Ten percent of cost of home, not to exceed

$7500

Eligible Property

Any single‐family residence (including condos, co‐ops) that will be used as a principal residence.

Refundable

Yes. Reduces income tax liability for the year of purchase. Claimed on tax return for that tax year.

Income Limit

Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000, respectively).

First‐time Homebuyer Only

Yes. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase.

Recapture

Yes. Portion (6.67 % of credit) to be repaid each year for 15 years. If home sold before 15 years, then remainder of credit recaptured on sale.

Impact on District of Columbia Homebuyer Credit

DC credit not available if purchaser uses this credit.

Effective Date

Purchases on or after April 9, 2008

Termination

July 1, 2009

 

Interaction with Alternative Minimum Tax

Can be used against AMT, so credit will not throw individual into AMT

 

Let me know how I can help. www.bradbergamini.com

 

Post a Comment

Brad Bergamini, real estate agent on Zillow

Share Prescott Real Estate News

Bookmark and Share

Prescott Real Estate on YouTube

Loading...

Brad Bergamini's answers on Trulia Voices

PRESCOTT, Arizona area homes for sale and listings from Brad Bergamini