$7500 Tax Credit - What the First Time Buyer Tax Credit Means in Louisville Kentucky

$7500 Tax Credit?

Congress recently passed (and the president signed into law yesterday) a housing stimulus package that has been billed as the $7500 Tax Credit for first time buyers. What does this mean to frist time home buyers? The correct answer is--it depends.

First off, we know that people are inquisitive about the tax credit and we are getting more than a few questions here at RE/MAX Properties East about it. We have put together an information pack about the details of the new law...as always, we recommend that you visit with a competent financial professional before doing anything.  That is always good advise!

Secondly, it is not, by precise terms, a tax "credit". It is actually a no interest loan over 15 years. You GET the tax "credit" for being a first time homebuyer, but that is only if the price of the house is over $75,000. Below that, it is 10% of the value of the home. You get it back on your taxes, regardless of whether you make enough to owe takes or not. It is refundable to you at that point.

Also, since it has to be paid back, it you sell your home, it is subject to a "recapture" in that year. (Means that you owe th money. Confusing, yes....it is to a degee.

All that having been said, some first time home buyers may well benefit greatly from this program and it is definately worth looking into  .if you'd like some help making sense of it all, give us a call, we will be happy to help.

• Rate this Post!

  Select Your Rating:

  • 5 Stars (Excellent!)
  • 4 Stars
  • 3 Stars
  • 2 Stars
  • 1 Stars (Poor)

• Share this Post

  Share With A Friend:

  Your Name Your Email

  Friend's Name Friend's Email

  Optional Message

  Send

• Print
• Social Bookmarking

  Add to Bookmarks: