Louisville First Time Home Buyers $7500 Tax Credit

Posted by Jonathan Karlen on Friday, September 2nd, 2011 at 9:32pm.

louisville first time home buyersI’m sure that many of you Louisville first time home buyers  have heard about the $7500 tax credit.  For those that haven’t, or are wanting to find out more information, the $7500 tax credit essentially applies to those First Time Home buyers that meet certain criteria:

1.  Purchase a home between April 9, 2008 through July 1, 2009.

2.  You claim the tax credit when you file you your taxes.  [If you have questions, be sure to ask your accountant.]

3.  The full $7500 tax credit may not be available to all persons.  You may elgibile for a partial credit (or even none).  This usually applies to those persons that earn a large income, or are purchasing a property with a value below a certain threshold.

4.  Its essentially an interest free loan.  You take the credit when you file your taxes the following year.  And then you have to repay the loan over 15 years.  So, if you receieved the full $7500 tax credit benefit, you would have to pay $500 per year back on the credit that received.  [15 years x $500 = $7500]

There are of course numerous volumes of stipulations and exceptions.  As just 1 example, if you go to sell your home and you sell the home in an arm’s length transaction at a fair market price, and received no equity money from the property, then you would not be required to repay the balance of the loan. Click here to search Louisville homes for sale now.

Regardless, its a great way for persons to get into a new home.  Even if you take the $7500 credit when you file your taxes, and put it into a CD at your local bank, and just make your payments each year when you file your taxes, you are making money off the interest you accrue.  It gives you added flexibility to have the use of the money.

If you have additional questions, please feel free to contact us and we’ll try to answer your questions, or put you in touch with loan officers and mortage persons that can explain exactly what you should qualify for, and how much you can afford to purchase.  [You also should speak to your accountant, as they should be up to speed on the most recent regulation changes and requirements to participate in the $7500 First Time Home Buyer Tax Credit.]

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