Monday, December 15, 2008
by Tom Cain and Company
Dear Friends,
In case you haven't heard, the Housing and Economic Recovery Act of 2008 has authorized a $7,500 tax credit for qualified first-time Home Buyers.
You must act quickly...this is good only through the end of July, 2009! This is a Tax Credit/Rebate for a first time home buyer only....Read this sentence very carefully....A first time home buyer is defined as someone who has not owned a principal residence during the past three years prior to the purchase of a new home.
Home Buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.
If you or someone you know is even considering the purchase of a new home, this is the time!! I would be happy to provide you or those you know with more information, if applicable! If you know of someone who this may benefit, please let me know as I would love to help them!
I have also included the following link for your convenience. Simply click on the link or copy and paste it into your web browser:
www.federalhousingtaxcredit.com
Tom Cain & Company
RE/MAX Realty Associates
800-537-0217 or 217-352-5700
Ask for Tom Cain, Eddie Mullins, Pam Franks or Tom Exton
