Blogs → Jason's Blog → First time Home Buyer Federal Tax credit

Posted Sep 30, 2008 9:31 pm (3 years ago)

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For aspiring home owners Buying Gilbert Real Estate, who find their goal difficult to obtain without the use of the recently suspended Down Payment assistance program, Fear not...  There's hope, newly enacted legislation providing a tax credit of as much as $7,500 for first-time home buyers might Have Replaced the Popular Zero Down home loans.

 

How Does It Work

Like so many of the good things in life, time is of the essence for First-Time Home buyers who want to capitalize on this golden opportunity to purchase Az Real Estate. Only homes purchased on or after April 9, 2008 and before July 1, 2009 are eligible.  For Example...the Credit can be used when purchasing  foreclosed chandler homes that may need a little fixing;  the tax credit is refundable which means, that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or all of the available credit up to 7500.00.  Let's Pretend a Home Buyer researched Gilbert Arizona Real Estate and made their purchase in 2008 and the home buyers federal tax liability was a $1000.00.  Now, assuming  the Homebuyer qualified for the entire $7500.00 Tax Credit, as a result they would receive a check for $6,500.00 ($7,500.00 Minus the $1,000.00 dollars owed).  If you have used a phoenix realtor in the past to purchase a home, You may still qualify as a first time homebuyer provided that it has been at least 3 years since you owned a home.

 

For Every Upside, There's Still an Upside

The Tax credit actually acts as a zero interest loan that is repaid to the federal government with a minimum of $500.00 per year for fifteen years.  When you break it down from a weekly check perspective... That's approximately $9.60 from each check for the full credit.  Hardly a miss when you consider it that war.   A certified public accountant is always  recommended to verify how these examples apply to a taxpayer's specific situation.