Umatilla Florida Blog

First-Time Home Buyers Tax Credit

    There is some great news for those purchasing their first homes. The good news comes in the form of a Tax Credit which can be used to offset Federal Income Taxes.

    A Tax Credit is different from a Tax Deduction. A Tax Credit reduces the amount of income tax owed on a dollar-for-dollar basis. For example, if an individual has a tax amount due of $2,000.00 before the Credit, and is able to claim a credit of $8,000.00, he or she would actually receive a check for $6,000.00.

    This is all possible thanks to two different laws which were recently passed. The first, the Housing and Economic Recovery Act of 2008, authorized a credit of 10% of the purchase price up to a total credit of $7,500.00. The credit was to be repaid by the taxpayer over a series of years.

    The second, the American Recovery and Reinvestment Act of 2009, improved upon the 2008 legislation by raising the maximum amount to $8,000.00 and removing the requirement that it be repaid.

    Here is the $8,000.00 Home Buyer Tax Credit at a Glance:

    For more information, go to:

http://www.federalhousingtaxcredit.com/2009/home2.html

    One of the first steps in buying a home is to contact a Realtor. A Realtor is a Licensed Real Estate Professional who is bound by a code of ethics and who has access to the Multiple Listing Service. A Realtor has the training and experience to guide the home buyer through the many steps required to purchase a home.  

    As a Realtor, my goal is to make your home-buying experience pleasant, stress-free and memorable. Please feel free to contact me for further information.

Geoffrey F. Presson

Barbara L. Johnson Realty, Inc.

Cell: 352-455-3684