Who is Eligible

• The $7,500 tax credit is available for first-time home buyers only.
• The law defines a first-time home buyer as a buyer who has not owned a home during the past three years.
• All U.S. citizens who file taxes are eligible to participate in the program.
  

Income Limits

• Home buyers who file as single or head-of-household taxpayers can claim the full $7,500 credit if their modified adjusted gross income (MAGI) is less than $75,000.
• For married couples filing a joint return, the income limit doubles to $150,000.
• Single or head-of-household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial first-time home buyer tax credit.
• Married couples who earn between $150,000 and $170,000 are eligible to receive a partial first-time home buyer tax credit.
• The credit is not available for single taxpayers whose MAGI is greater than $95,000 and married couples with an MAGI that exceeds $170,000.
  

Effective Dates for the Tax Credit

• First-time home buyers would receive a $7,500 tax credit for the purchase of any home on or after April 9, 2008 and before July 1, 2009. To qualify, you must actually close on the sale of the home during this period.
  

Payback Provisions

• The tax credit essentially serves as an interest-free loan to be repaid over 15 years.
• For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. However, the buyer doesn't have to start repaying the credit until two years after the tax year in which the credit is claimed.
• If the home owner sold the home, then the remaining credit would be due from the profit of the home sale.
• If there was insufficient profit, then the remaining credit payback would be forgiven.

For more details on the tax credit, go to www.federalhousingtaxcredit.com

The credit is a federal tax credit subject to qualifications, conditions and restrictions, and repayment of the tax credit is required. the credit is only available for a limited time. Details are set forth in PL 110-289 and general information is available at www.FederalHousingTaxCredit.com

*Astoria Homes does not advise on any personal income tax matters or issues. The information provided here is for general information only and does not represent tax or legal advice (either express or implied), nor should it be a substitute for professional tax or legal services and/or advice. We strongly urge that before you purchase a home that you seek advice from a professional advisor that is familiar with your personal facts and circumstances. They can assist you in determining whether you qualify for the new credit and the amount available to you. This material shall not constitute a valid offer in any state where prior registration is required or if void by law. 2008 © Astoria Homes. All Rights Reserved.