If you’re thinking of buying your first house, this new credit might help.  It’s a credit of up to $7,500 that is repaid (interest-free) over 15 years.  After you receive the credit, you pay 1/15th of it back each year when you file your taxes (e.g. $500/year).

The fine print:  To be eligible, you must buy the house between 8 April 2008 and 1 July 2009.   Individuals filing single and married couples filing jointly are eligible for $7,500; married persons filing separately are eligible for $3,750.  The house must be in the US.  The house must be your primary residence, not a vacation or rental home.   The credit phases out for incomes of $75,000 – 95,000 for individuals filing singly and $150,000 – 170,000 for married couples filing jointly.

IRS Form 5405 and news item of 23 December 2008.

Tags: credits, real estate

Trackback URI | Comments RSS