1st Time Home Buyers Tax Credit

1st Time Home Buyers Tax Credit
Do you know how to use the 1st time home buyers tax credit for yourself or your clients? Originally (2008) the tax credit had a snake in it. It had to be repaid over time. That has been fixed. It does not have to be repaid now if the people do not sell the home for 3 years. The credit amount was $7500 Not everyone is eligible; but for those who are the tax credit can be quite helpful.
A single person who makes less than $75,000 or a married couple who makes up to $150,000 and who have not owned a home during the last 3 years will qualify. The deduction is 10% of the purchase price of the home up to $8000. This will not work as down payment assistance because the money comes when the 2009 tax refund is received. The credit is only good for homes purchased during 2009. It is possible that it will be extended.
Not many buyers are using the credit. That is probably because of the old restriction of having to pay the money back. The need to have a down payment could also be a problem. For people who plan ahead this could be a nice bonus. For REALTORS it could be a minor stimulus. For more information go to: http://www.federalhousingtaxcredit.com/2009/glance.php
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com