| Most Americans, or approximately 80%, are not | | | | to the eligible taxpayer for the difference. To |
| aware that on July 30, 2008, President Georgia | | | | clarify, if the eligible taxpayer owes $5,000 in |
| Busch signed H.S. 3221, the Housing and Economic | | | | federal income taxes, the eligible taxpayer would |
| Recovery Act, into law. This new legislation allows | | | | pay nothing and a $2,500 payment would be sent |
| first-time home buyer(s) to take advantage of a | | | | to them by the Internal Revenue Service (IRS). In |
| $7,500 tax credit so they may purchase a | | | | other words, if the first time home buyer(s) were |
| single-family home, townhome or condominium | | | | due a $1,000 tax refund for the year, they would |
| unit. If the new prospective home buyer(s) have | | | | be eligible to receive $8,500 from the Internal |
| not owned a single family home during the past | | | | Revenue Service (IRS). |
| three (3) years and are United tates citizens who | | | | The first time homebuyer(s) may take the |
| file federal income tax returns, they are now | | | | $7,500 federal tax credit on their 2008 or 2009 |
| eligible for a tax credit of $7,500 from their | | | | federal tax return. For example, those eligible first |
| favorite Uncle Sam. Even first time home buyers | | | | time homebuyers who purchase a home in 2008 |
| who are not citizens of the United States may be | | | | may take the $7,500 federal tax redit in 2008. |
| eligible for this tax credit. | | | | Those eligible first time homebuyer(s) who |
| In order to qualify for the $7,500 federal tax | | | | purchase a home in 2008 and/or 2009 may take |
| credit, the home buyer(s) must close the | | | | the $7,500 federal tax credit in 2008 or 2009. |
| transaction on their newly acquired home on or | | | | Unfortunately for the first time homebuyer(s) the |
| after pril 9, 2008 and before July 1, 2009. This | | | | $7,500 federal tax credit program has a |
| federal tax credit program does not have income | | | | repayment provision. The $7,500 federal tax |
| limits for the first time home buyer(s). The single | | | | credit is an interest-free loan from Uncle Sam |
| orhead-of-household taxpayer may claim the full | | | | which must be repaid by the first time |
| $7,500 tax credit if their adjusted gross annual | | | | homebuyer(s) over a fifteen (15) year period. The |
| income is less than $75,000. For those married | | | | first time homebuyer(s) may choose to repay |
| couples who are filing joint federal tax returns, the | | | | the iinterest-free loan back to Uncle Sam over a |
| combined gross annual income limit allowed by | | | | period of 10 years at $750 per year. If the first |
| Uncle Sam is $150,000. Unfortunately, the $7,500 | | | | time homebuyer(s) decided to sell the home any |
| federal ax credit is not available for single | | | | time within the first ten (10) years, the remaining |
| taxpayers whose adjusted gross annual income is | | | | federal tax credit would be due and payable from |
| above $95,000. For married federal taxpayers | | | | the profit/equity of the home sale. If the equity |
| filing jointly, their annual adjusted gross annual | | | | profit was not adequate to repay Uncle Sam |
| income may not exceed $170,000. | | | | from the sale of the home, the remaining federal |
| The refundable tax credit means that if a | | | | tax credit due and payable would be forgiven by |
| taxpayer pays less than $7,500 in federal income | | | | Uncle Sam. |
| taxes for the year, Uncle Sam will tender a check | | | | |