Who is eligible?
* The tax credit for $ 7,500 is only for first-time home buyers.
* The law defines for the first time home buyer as a buyer who has no home in the last three years of ownership.
* All U.S. citizens, taxes are to participate in the program file.
Who has the right
* Purchase of the first house to a state or local mortgage broker tax-exempt bonds to finance the property.
* Non-resident aliens
Types of property eligiblefor the tax
* All houses, whether eligible family homes, townhouses or condominiums.
* There are, however, meet certain conditions: (a) the home must be used as a principal residence and
(B) The customer has no home in the last three years in the building.
* The tax credit consists of newly built houses.
Income limits
* Individuals who file as single or head-of-household taxpayers can claim the full credit $ 7,500 if their adjusted gross income(AGI) is less than $ 75,000.
* For married a joint statement, the income limit doubles to $ 150,000.
* Single or head-of-household taxpayers who earn between $ 75,000 and $ 95,000 are eligible to receive a partial first home time buyer tax credit.
* Married couples filing jointly earning between $ 150,000 and $ 170,000 are eligible to receive a partial first home time buyer tax credit.
* The credit is for single taxpayers AGI isCouples over $ 95,000 and married filing jointly with an AGI that exceeds $ 170,000.
The dates of the application of the tax
First time home buyer in 2009 would receive a tax credit of $ 7,500 for the purchase of your home from April 9, 2008 and before July 1. Be eligible, you must actually sell the house in the neighborhood in this period.
Tax credit is refundable
* A refundable credit means that if you pay less than $ 7,500 federalTaxes, then the government will check for the difference in writing. (A), for example, if you have $ 5,000 federal tax would not have to pay to the IRS and a $ 2,500 payment from the government. (B) When the government received a tax refund claims under $ 1,000, reimbursement) should rise to $ 8.500 ($ 1,000 more than the $ 7,500 home buyer tax credit.
* If you bought houses in 2008, the tax credit back to the 2008th your tax return
* If you purchaseIn 2009, there is the possibility of credit on the 2008 or 2009 tax returns.
Payback Provisions
* The tax credit is an interest-free loan up to 15 years in which must be repaid.
* The minimum redemption amount will be 15 equal annual installments. For example, if the loan amount is $ 7,500 then the home buyer in the long run a minimum of $ 500 per year for 15
ALSO: On July 30, 2008 President Bush signed into law a new Housing Reform Billdesigned to be incentives for the recovery of the housing industry.NOW time to take advantage of existing programs of assistance to take a home before the deadline, the end of the year.
Two main features are:
1. All government-sponsored zero down payment assistance programs on 1 October 2008.To be eligible for these programs, which all housing loans approved on September 30, 2008, lifted.
2. The minimum down payment for Federal Housing Administration (FHA) loans,the largest buyer of mortgages in the United States in 3 percent to 3.5 percent October 1, 2008.