On Wednesday, July 30, President Bush will sign the recently-passed housing legislation (H.R. 3221) into law. The new first-time homebuyer tax credit will go into effect immediately upon the President's signature. This credit is intended to help people purchase and secure their first home. The provision should prove to be of great benefit to communities such as Steamboat, where purchasing a first-time home can be difficult to afford. The chart presented below outlines the basic features of the new credit.
Amount of Credit: 10% of the cost of a home, not to exceed $7,500
Eligible Property: Any single family residence (including condos) that will be used as a principle residence
Refundable: Yes. Reduces income tax liability for the year of purchase. Claimed on tax return for that tax year.
Income Limit: Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).
First Time Home-Buyers Only: Yes. Purchaser (and purchaser’s spouse) may not have owned a principle residence in 3 years previous to purchase.
Effective Date: Purchases on or after April 9, 2008
Termination: July 1, 2009
Amount of Credit: 10% of the cost of a home, not to exceed $7,500
Eligible Property: Any single family residence (including condos) that will be used as a principle residence
Refundable: Yes. Reduces income tax liability for the year of purchase. Claimed on tax return for that tax year.
Income Limit: Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).
First Time Home-Buyers Only: Yes. Purchaser (and purchaser’s spouse) may not have owned a principle residence in 3 years previous to purchase.
Effective Date: Purchases on or after April 9, 2008
Termination: July 1, 2009
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