What could YOU do with $7,500?

Feb. 10, 2009 - PRLog -- Who is Eligible?
First-time homebuyers who purchase a principal resident on or after April 9, 2008 and before July 1, 2009 are eligible. If you (and your spouse, if married) have not owned a principal residence for a three year period before your purchase, you may qualify as a first-time homebuyer.

How does it work?
Like all tax credits, the first-time homebuyer tax credit opportunity through HERA may directly reduce the total amount of taxes you owe. When you file your Federal taxes you may be able to subtract the amount of the credit from your Federal income tax liability, thus increasing the size of your refund or reducing the amount you owe.

The tax credit is equal to 10 percent of the purchase price of your home up to $7,500. The full credit is available for single individuals whose adjusted gross income is less than $75,000 and for married couples filing jointly whose adjusted gross income is less than $150,000. If adjusted gross income exceeds $75,000 for single individuals or $150,000 for married couples, the tax credit begins to phase out.

Does this credit require repayment?
The tax credit is not completely free money. It has a payback provision that makes it similar to an interest-free loan. Two years after the credit is claimed you begin repayment in full over 15 years. Not a bad deal!

The tax credit may be used for any purpose such as:
•   Credit Card Debt Consolidation
•   Home Furnishings
•   Home Improvements
•   Vehicle, Installment, or Student Loan Payoff
•   Etcetera, etcetera, etcetera!  

Please do not hesitate to contact my office if you or anyone you know is in need of assistance.


Andy Dilts – Dilts & Associates of Bell Mortgage
Certified Mortgage Planning Specialist, Qualified Financial Advisor
651-209-9884 andy@bellmortgage.com
www.bellmtg.net

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Since 1880, Bell Mortgage has been a pioneer in the mortgage business in Minnesota. Bell enjoys a successful and enduring history that is unmatched by any of its competitors.