First Time Home Buyer's Get Up To $7500 Tax Credit

Submitted by taxman on December 26, 2008 - 9:40am.

In another attempt to help taxpayers and stimulate the economy the Government has come up with a tax credit for first time home buyers.  This credit is available to first time home buyers only and singles earning up to $75,000 per year and couples earning up to $150,000 qualify for the full credit.

The credit will function like a 15 year interest free loan.  Payback will be in the form of additional tax on personal income tax returns and will start the second year after the credit is claimed.  The purchase date must be between April 8, 2008 and July 1, 2009.

Homes purchased in 2008 can be claimed on the 2008 return.  Homes purchased before the expiration of the credit can be claimed on either the 2008 or 2009 return.

When a home is sold before the credit has been paid back the balance of the credit will be due when the home is sold.

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