$15000 Homebuyers Tax Credit

Well, so much for that idea! Working to accommodate the new, lower overall limit of the bill, our elected officials effectively wiped out a Senate-passed provision for a new $15,000 tax credit to defray the cost of buying a home.

I find it pretty amazing that with our economy in the toilet the way it is, especially in the mortgage and housing market, of all the things they would cut, they chose to cut this provision that could have potentially given a real spark to our down-trodden economy.

All is not lost, though. Instead of the new $7500 first-time homebuyer’s credit, that credit is now replaced with an $8000 first-time homebuyer’s credit. First-time is defined as not having an ownership interest in a personal residence for the past 3 years. You must purchase your new home before July 1, 2009. The credit is equal to 10% of the purchase price of the new home up to a limit of $8000. Unlike the $7500 tax credit that was really an interest free loan that would need to be repaid to Uncle Sam over the next 15 years, this new version of the homebuyer’s tax credit is a true credit. It does not need to be repaid! That’s good news.

Please feel free to contact E-File Florida at 954-583-8534 or visit us on the internet at www.efileflorida.com for more great tax tips and articles.

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