First-time Homebuyer Gets Tax Credit Relief
Jul 30, 2008 by Tre Pryor, Editor-in-Chief. News
Today, President Bush signed the recently-passed housing legislation (H.R. 3221) into law. This first-time homebuyer tax credit is now in effect. What does that mean for first-time homebuyers here in Louisville, Kentucky? I’m glad you asked!
| 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, coÂ]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. |
April 25th, 2009 at 9:16 am
[...] in July we posted about the First-time Homebuyer Gets Tax Credit Relief that was signed into law by President Bush. This was great news for home buyers. Then, early in [...]