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    1 Reply Latest reply on May 30, 2009 11:41 PM by numbersguru

    Tax Incentives

    LUCKIEST Guide
      I have a question with regards to the tax incentives intended to encourage
      first-time home buyers to purchase homes.
      Is the $7,500 incentive a tax credit
      or are their multiple incetives for first-time home buyers that I may be

      Thank you in advance
        • Re: Tax Incentives
          numbersguru Newbie
          I am a CPA that deals with individual taxation matters - just enrolled in this community today. As such, there are two initiatives I am aware of:

          1) The first was initiated in 2008 for first time home buyers (who meet specific requirements) in the amount of $7,500. It carries with it a significant catch of needing to be repaid by the taxpayer over a 15 year period.

          2) The second was initiated in 2009 and is for first time home buyers (who meet specific requirements) in the amount of $8,000 which does not need to be repaid unless specific parameters are not adhered to by the home buyer.

          My opinion concerning your question is that the $7,500 is a tax credit in the year of home purchase for the first time home buyer, but repayment certainly should be in the home buyer's mind as he/she takes the credit. The 2009 credit of $8,000 is certainly more attractive (no repayment as long as specific parameters are met).

          Please note that there are a number specific requirements that must be met for the incentives to be applicable to a first time home buyer as well as the usual exceptions to the rules.

          Best Regards