Will You Take Advantage of the First-Time Homebuyer Tax Credit?
Tax season is here! Will you be taking advantage of the First-Time Homebuyer tax credit? Here are some things to remember:
Any "first-time homebuyer" who puchases a home between August 9, 2008 and July 1, 2009 qualifies. (A first-time homebuyer is anyone who has not owned a home for the 3 years prior to purchase.)
The tax credit amount is equal to 10% of the purchase price of the home (maximum $7500), and it does have a payback of 6.67% ($502.50) per year over 15 years. For this reason, some have considered it to be more like an interest-free loan. If you sell your home prior to the end of the payback period, the balance of the credit that is owed will come out of the proceeds of the sale-unless you sell the home for a loss.
Before you take advantage of the tax credit, find out more information from www.irs.gov or consult your tax professional.
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