Congress Gives Home Buyers a Unique Opportunity

If $7500 would help you buy a home, the Housing and Economic Recovery Act, passed by Congress at the end of July, is definitely something you should investigate.

If you:

a) Haven’t owned a principal residence in the past 3 years

b) Don’t have an adjusted gross income of more than $75,000 ($150,000 if you file a joint return).

c) Buy a home costing more $75,000 or more before July 1, 2009.

you will probably qualify for the maximum tax credit of $7500 –which is in essence an interest-free loan from the government. (you do have to pay it back – but over 15 years, at about $500 per year for the full credit)

As with all government programs, the devil can be in the details, so be sure to visit Congress’s website at http://www.jct.gov/ and look for the publication JCX-63-08 on the home page.

There are several other tax breaks and options for homeowners and first-time buyers you can find out about in Publication 530 at http://www.irs.gov/.