$7,500 Buyer tax break

Here are six important facts that home buyers should know.
1. Purchases until July 1, 2009 qualify.
The homebuyers tax break will be applied to home purchases from April 9, 2008 until July 1, 2009.
2. You don’t have to be a first time homebuyer.
Anyone is eligible as long as they haven’t owned a home in the previous three years.
3. Eligibility requirements vary.
The amount is 10% percent of the purchase price up to $7,500. This is applicable to singles making below $75,000 or familes with a income lower than $150,000. Single buyer’s making between $75,001 and $95,000 and families making between $150,001 and $170,000 are eligible for the credit on a reduced basis.
4. Consider it an interest free loan.
The tax break will be paid back in small 6.67% payments over 15 years. Payments will be no more than $500 a year and will not start until 2011. The National Assocation of Realtors is pushing legislation to make this a complete tax break without having to pay it back.
5. No registration required.
There aren’t anysign-ups or pre-registration to receive the tax break. All you need to do is claim it on your 1040 tax form.
6. New homes included.
If you are building or buying a new home the purchase date will be considered your occupancy date. This is only applicable to primary residences, not investment or summer homes.

For more information contact your accountant or an IRS representative.

Keller Williams Group One Inc.