Home buyers who have not owned a home in the last three years will be eligible for a tax credit equal to 10 percent of the property up to a maximum of $7,500 under the new houseing bill.
The reason for this bill is to help get buyers off the fence and reduce inventory levels.
Here’s is a summary of the how the credit works:
- If you have not owned a house during the past three years and can go to closing before the end of next June(2009), you may be eligible for up to a $7,500 credit against your federal taxes for 2008 or 2009 ($3,750 if you file taxes as a single person).
- This program is actually a 0% loan, not a true credit. The credit applies only to homes purchased on or after April 9, 2008, and before July 1, 2009.
- High-income home buyers don’t qualify: Eligibility begins phasing out for single filers with adjusted income of more than $75,000 and $150,000 for joint filers. It completely phases out at $95,000 for singles and $170,000 for married couples filing jointly.
Source: The Washington Post & Realtor.org
For more information, please read Kenneth Harney's piece from the Washing Post. (see the link below)
http://www.washingtonpost.com/wp-dyn/content/article/2008/08/01/AR2008080101248.html?sub=new