President Bush just signed the Housing and Economic Recovery Act of 2008. The benefits for first time home buyers are simply fantastic. Now, this is a $7500 tax Credit, not a tax deduction.

You qualify as a first time home buyer, if you have not owned a home in the last 3 years. As long as you buy a home after 4/9/2008 and before 7/1/2009, you qualify for the credit.

The tax credit will be calculated as 10% of the price of the home, up to a max of $7500.00. If your home costs $75,000 or more, you will qualify for the full amount. Let’s assume your tax liability is $6,000, the IRS will still take $7,500 off your tax bill, which means you will get a refund of $1,500.

Home buyers are required to repay the tax credit to the government, interest free, over 15 years or when the house is sold, if there is sufficient capital gain. The payback is 6.67% of the credit each year or $502.50. If you keep the house for 15 years, the loan is paid off without interest. If your home has not appreciated in value, by the time you sell it, the debt will be forgiven. Also, if you die before repaying the debt, it is forgiven.

There are income restrictions to qualify: $75,000 for a single person, $150,000 for a couple filing together. For more details, please contact your tax professional.

Do you know anyone who has been thinking about buying a home? Please forward this Ocala Real Estate Blog to them or have them contact The Shultz Team. We are ready to serve!

Call Brigitte Shultz direct at 1-800-243-4087

Art & Brigitte Shultz
The Shultz Team
#1 Team at Re/Max Premier Realty
Ocala, FL
Toll Free: 800-243-4087
Direct: 352-291-1276
Info@OcalaVisualTours.com
www.OcalaVisualTours.com
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