My New Blog

"One mistake will never kill you. The same mistake over and over again will."

Harvey Mackay

"Life is a succession of lessons which must be lived to be understood."

Ralph Waldo Emerson

"You don't get paid for the hour. You get paid for the value you bring to the hour."

Jim Rohn

Amount of Credit

Ten percent of cost of home, not to exceed $7500

Eligible Property

Any single family residence (including condos, coops) that will be used as a principal 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). Phases out above those caps ($95,000 and $170,000, respectively).

First time Homebuyer Only

Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.

Recapture

Yes. Portion (6.67 % of credit) to be repaid each year for 15 years. If home sold before 15 years, then remainder of credit recaptured on sale.

Impact on District of Columbia Homebuyer Credit

DC credit not available if purchaser uses this credit.

Effective Date

Purchases on or after April 9, 2008

Termination

July 1, 2009

Interaction with Alternative Minimum Tax

Can be used against AMT, so credit will not throw individual into AMT.

"Anyone who stops learning is old, whether at 20 or 80. Anyone who keeps learning stays young. The greatest thing in life is to keep your mind young."

Henry Ford