NEW HOUSING BILL BASICS & WHAT TO LOOK OUT FOR 2
The New Housing Bill provides assistance to first-time homebuyers, making their purchases before 1 July 2009. The homebuyers get a tax credit of 10% of the house price, but not exceeding $7500.
The flies in the ointment are:
$7500 is not 10% of the house price in many places in the country
The tax credit has to be repaid 2 years after the purchase. At the tax credit of $7500, the resulting average increase in your tax bill for 15 years will be $500.
info from FHA website, image from Microsoft Clipart
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Check out what others are saying about this post...[...] How many of us are buying a $750,000 home right now?) Here’s the other issue, reports Ren at Accounting Solver: The tax credit has to be repaid 2 years after the purchase. At the tax credit of $7500, the [...]
[...] a $7500 tax credit this year. This seemingly juicy tax break comes with a price, though. According to AccountingSolver, the money has to be paid back, The tax credit has to be repaid 2 years after the purchase. At the tax credit of $7500, the [...]