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Home Buyer Tax Credit - Almost Gone

by Doug & Gwen Campbell at Sun Bay Associates

If you are interested in taking advantage of the home buyer tax credit - hurry, it's almost gone.  You must have your home under contract by April 30 and have closed on it by June 30, 2010.

The home buyer tax credit not only allows first time home buyers to get a tax credit or up to $8,000, it also allows current homeowners who purchase a new home, as their primary residence, to collect up to $6,500.  Keep in mind this is NOT a tax deduction, it is a tax credit.  That means it is real money in your pocket.

So, to keep this short and to the point, to take advantage of the home buyer tax credit, before it is gone, get your new home under contract by April 30.  Then be sure it closes by June 30.  It's that simple.  First time home buyers are eligible for up to $8,000.  Existing home owners who buy a new house for their primary residence are eligible for up to $6,500.

Contact us for details.

New $7,500 Tax Credit for First Time Buyers

by Sun Bay Associates

The Housing and Economic Recovery Act of 2008 was just signed by President Bush with some amazing benefits for first time homebuyers. Call everyone you know who wants to buy their first home (or who hasn't owned one in three years), this is too good to miss - it's a $7,500 tax CREDIT (not deduction but a credit).

If you have not owned a home in three years, you qualify as a first time home buyer. If you buy a home after April 9, 2008 and before July 1, 2009, you qualify for this credit. Call your friends who just bought a home since April 9th and tell them they may take $7,500 off their tax bill if they qualify. It has to be your principal residence, so rentals do not count.

The tax credit is 10% of the cost of the home, up to a maximum of $7,500. This is not an additional deduction that lowers the amount of income to be taxed, it is a tax credit. In other words, you take $7,500 off your tax bill. But there is a catch; the credit you receive now is actually an interest-free loan that must be repaid.

The loan has no interest, and will be paid back over 15 years. You get the credit on your 2008 taxes, but you start paying it back on your 2010 taxes that are due in 2011, so you get at least two years without a payment. You pay back 6.67% of the credit each year, so for a $7,500 credit the payment is $502.50 per year. If you stay put for 15 years, you pay it off with no interest.

What happens if you sell the house? You pay the balance back at the closing. So, you get $7,500 now, and pay the rest of it back if you make money on the sale of your house. What happens if you do not make enough money when you sell your house? They forgive the rest of the debt.

Other restrictions stipulate that you have to buy your first house in three years before July 1, 2009, not have super high income, not use bond financing and buy anywhere in the US.

If you'd like to learn more about this program, please call me or visit www.SunBayAssociates.com !

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Photo of Gwen and  Doug Campbell - Sun Bay Realty Group Real Estate
Gwen and Doug Campbell - Sun Bay Realty Group
at Keller Williams Realty
30522 US Hwy 19N, Suite 107 S
Palm Harbor FL 34684
Doug's Cell 727-741-4189
Gwen's Cell 727-741-7260
Fax: 888-447-7908