First-time Buyers: $7500 Tax Credit Makes Your Frederick Home Purchase Affordable
Home Buyer Tax Credit: How It Works
Thanks to passage in Congress of the first-time home buyer tax credit earlier this year, first-time home-buyers in the Frederick Real Estate Market can take advantage of a $7500 tax credit.
The definition of first-time homebuyer is broader than you might think. To get the credit, the homebuyer must not have owned a home in the previous three years. The home must be a principal residence and purchased between April 9, 2008 and July 1, 2009. (although the National Association of Realtors, NAR, is lobbying to have this date extended.)The credit is for 10 percent of the purchase price, up to $7,500; in the Frederick Real Estate Market, there is nothing that I know of on the market for less than $75,000. Single taxpayers with modified adjusted gross income (MAGI) up to $75,000 and couples with MAGI up to $150,000 will qualify for full credit. Singles with MAGI up to $95,000 and couples with MAGI up to $170,000 will get a reduced amount. Those with higher incomes don’t qualify.If the amount of tax a homebuyer owes is less than the amount of the credit, they get to keep the difference in the form of an IRS refund.The homebuyer must begin to repay the credit in two years in increments of about $500 a year over a 15-year period for those who received the full creditHomebuyers who sell their home before the credit is repaid must pay off the loan with any profits. If they sell the home at a loss, the loan is forgiven.NAR is also encouraging Congress to make the credit available to all buyers and to eliminate the repayment requirement. More detail on how the credit works is available from NAR on REALTOR.org. With interest rates under 5%, and home prices at 2003 levels, its a great time for first-time homebuyers to find a great Frederick home. Call us for a personal tour of some lovely Frederick homes: 301-831-9947. Or visit our website:
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The Highland Group
Chris & Karen Highland * 301-831-9947
Turning Point Real Estate – 301-831-8232
email us: isell4u2@msn.com
Text Us: 301-401-5119
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