On September 16th of this year, the IRS announced a new tax credit included in the recently enacted Housing and Economic Recovery Act of 2008. I've read very little about this, and I wish it were more generally known. It might help buyers with their reluctance to take the step and purchase a home. With interest rates still low and inventory high, this tax credit is just another reason to move forward. The credit is for a limited time - the home must be purchased after April 8, 2008 and before July 1, 2009.This credit reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar. It is fully refundable, meaning that the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax that they owe. There are conditions; for example, there are income limits, and the credit operates much like an interest-free loan, because it must be repaid over a 15-year period. Also, the home must be the buyer's main residence, and the buyer must not have owned a home in 3 years to be considered a first-time buyer. Under certain conditions, the buyer may use the credit for repairs or needed purchases.
See an in depth story about this on the RISMedia site or check out the IRS website for more details.
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Real Estate Agents, Yonkers, NY
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