Home buyers can receive up to a $7,500 tax credit thanks to a law that was passed by the federal government last year. It’s easy to take advantage of this and right now is the perfect time to buy a new home.
How it works
- Purchase a home by June 30, 2009
- Claim the tax credit on your tax return
- Receive up to $7,500 extra in your refund check
Get started today
Call Lori Duffy at 614-918-2073 to learn more about the tax credit and schedule a time to tour condos or houses in one of our communities.
No extra paperwork
There isn’t any tax credit paperwork to fill out when you buy your new home. Simply claim the tax credit on your tax return and you could receive up to $7,500 extra in your tax refund check. You can still receive extra money back this year even if you’ve already filed your tax return.
Home buyers and first time home buyers
You may qualify even if you aren’t really a “first time home buyer.” The tax credit is available to those who have not owned a principle residence three years prior to the purchase.
You still have time
Homes purchased on or after April 9, 2008 and before July 1, 2009 can qualify. Signing a purchase agreement during those dates may not be enough. The “closing” must occur between the specified dates to qualify.
A bigger tax refund
You could receive up to $7,500 extra with your tax refund. The tax credit is applied to the refund amount you are owed or the amount you still owe on your taxes. If you would receive a $1,000 tax refund without the tax credit, you would receive an $8,500 refund with it. If you would owe an extra $1,000 on your taxes without the tax credit, you would receive a $6,500 refund with the tax credit.
Up to $7,500
The amount of the tax credit is based on 10% of the home cost with a maximum tax credit of $7,500. Therefore, homes purchased for $75,000 or more qualify for the full $7,500.
Better than a 0% loan
The tax credit might be considered a 0% loan because the amount you receive must be repaid, however, you won’t have to write a monthly check like a typical loan. The tax credit amount you receive will be divided into fifteen equal amounts and repaid once per year over fifteen years. The annual payments will simply be subtracted from your tax refund or added to the amount you owe with your tax return each year.
You may sell your home before you have owned it for fifteen years. Any tax credit amount still due at that time will be paid from the profit. If the profit is less than the amount due, the balance will be forgiven and does not need to be repaid.
Many people plan to pay off credit card debt with the money they receive from the tax credit. They would much rather pay 0% interest than the high credit card interest rates they pay now.
Why not?
This is a great opportunity and it ends June 30, 2009. Once you decide which home to buy, it can take anywhere from one month to several months to “close†on your new home. You may need to make a decision soon to meet the deadline. It’s free money. Take it or leave it. Well, not really free, but close to it.
More information
Visit http://www.federalhousingtaxcredit.com for a list of Frequently Asked Questions and complete details about the program; including eligibility requirements. You should consult a qualified tax advisor or legal professional about your unique situation.
Lifestyle Communities is providing this information for general guidance only. The information on does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
