Some good news for first-time homebuyers:

As part of the Housing and Economy Recovery Act of 2008, the IRS authorizes a deduction of up to $7,500 for qualified first-time homebuyers. The tax credit is part of a recently enacted legislation to help people recover from the recent mortgage crisis.

The tax credit is basically an interest-free government loan that must be repaid over a 15 year period. You have to start repaying the credit in the second year after the tax year that the home was purchased.

Tax Credit Rules

• The home must be purchased as primary residence.
• The tax credit is available for first-time homebuyers only. However, you could qualify if you´ve owned a home before, but not as your principal residence during the 3 years prior to the purchase.
• The credit is equal to 10% of the home purchase price, up to a limit of $7,500.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full credit.
• The home must be purchased on or after 04/09/08 and before 07/01/09.

If you are planning on buying your first home and need any assistance, please give us a call @ 941.866.1666. We will be glad to discuss any details.