Housing Tax Credits

If you've purchased your first home after April 8, 2008, the IRS may give you a $7,500 credit on your 2008 tax return. As part of the Housing and Economic Recovery Act of 2008, the first-time home buyer credit, is fully refundable, meaning that the credit will be paid out in excess of your total tax liability to eligible taxpayers. The maximum credit is $7,500 and is calculated at 10% of the cost of the home (up to $7,500). Buyer beware, the credit isn't as prestigious as it seems. You will have to pay back the credit over 15 years, beginning in the year after you receive the credit. There are income limitations and special rules. If you think you qualify or want to try and qualify, please contact our office to put a game plan together. As with much in life, nothing lasts forever, meaning, we may see significant changes to this tax benefit upon the passing of the proposed 2009 economic stimulus package. Please stay tuned to the Valley Oak blog for further updates. Feel free to visit the following link for the current housing proposals being discussed.
http://isakson.senate.gov/press/2009/020409housing.htm