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Will you qualify for the $7500 first time home buyers tax credit?

December 13th, 2008 · 4 Comments · first time home buyers, macomb county MI, macomb county mi real estate market, tips for home buyers

There has been so much talk in the last few months about the buyers market in Macomb County, as well as mortgage programs that have gone by the wayside, that the $7500 tax credit for first time home buyers has fallen under our radar.

This past Wednesday I received a call from a young lady who is thinking of purchasing a home in northern Macomb County and she had a question about this federal tax credit.  I pointed her to the website that gives the full details and this morning thought I would jot down a few key points here for all of you.

You will qualify for this tax credit if you:

Are a first time home buyer.  (Married?  Both spouses must be first time home buyers)

Close on the purchase of your home between April 8, 2008 and July 1, 2009.

Your income doesn’t exceed $75,000 (for single people) or $150,000 for married people.   (There is a phase-out for people earning between $75,000 and $100,000.  You can receive a partial tax credit if you fall in this range.  Go to the IRS website that has more information on this.)

This tax credit does need to be paid back, but it is an interest free pay back.  It is also paid back over a period of 15 years if you don’t sell the home.   I can see this $7500 tax credit being put to good use by many first time home buyers in our local area:  Repairs and remodeling of bank owned homes (foreclosures),  etc.

Remember, you must close on the purchase of your new home before July 1, 2009.  There isn’t any word out yet from the Federal government as to whether this program will be extended. 

Questions?  I’d love to hear from you.

~Kris~   A Macomb County MI real estate agent

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4 responses so far ↓

  • 1 Manny in Houston // Apr 19, 2009 at 8:54 pm

    Question: Wodering if I qaulify for the tax credit?

    My wife owns a home that she bought in 2002 when we were single. We currently live in this home when we got married. Do we qualify for the tax credit even though we haven’t bought a home in the last 3 years?

    2 realtors have told us that we do, I have not been able to find any information clear enough to convince me.

    Thanks, Manny in Houston.

  • 2 Kris Wales // Apr 20, 2009 at 4:18 am

    Since you state that you currently live in the home I am assuming that your wife still owns the home. Based upon that assumption
    I believe the answer is no, that she doesn’t qualifty for the first time home buyers tax credit.

    Here is the wording from the IRS.gov site on what a first time home buyer is:

    A “first-time homebuyer” is any individual (and spouse if married) who had no present ownership interest in a qualifying principal residence during the 3-year period ending on the date of purchase of the principal residence for which a first-time homebuyer credit is being claimed

    http://www.irs.gov/taxtopics/tc611.html

    If your wife had sold the home prior to 3 years ago, then you would qualify for the tax credit.

    As always, check with your accountant or tax preparer. I am only a Realtor™ interpreting what the IRS is putting out for publication.

    Kris Wales

  • 3 Kathleen Joslin // Aug 1, 2009 at 2:38 pm

    Hi Kris,

    Are there any new First Time Home Buyer Programs for Lakeside? I would love it if you could send me a link for it.

    Thank You,

    Sincerely,

    Kathleen

  • 4 Tennessee Realtor // Oct 19, 2009 at 12:25 pm

    The tax credit is benefiting new home buyers all over the country. And be prepared to post a new deadline for there will be an extension amongst home builders and, eventually, the government too.

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