The "Real" State - Corona, CA

Prolegomena. My name is Tim Trainor. The goal of this blog is to be informative. I will use this space to write about my experiences, real estate in Corona, CA, finances, non-profit organizations and my life in general. My hope is that you would return to this page in an effort to learn more about my practice, as well as more about me. The initial focus is going to be on real estate, because it is such a relevant topic and because this is where my business is focused today.

Sunday, November 9, 2008

Tax Credit

There has been a lot of talk about the tax credit for "first-time homebuyers". Here are a few of the details.

1. First-time homebuyer
2. Home must be purchased between April 9, 2008 - July 1, 2009.
3. Must be a principal residence

The credit is equal to 10% of the home purchase price capping out at $7,500. This "credit" is essentially an interest free loan from the government. I say that because it MUST be re-payed over the next 15 years. You pay it back either from your refund or by paying more taxes ($500 per year). There are also some income restrictions. If you make more than $95,000 (single) or $170,000 (married), then you get no credit at all. At $75,000 (single) and $150,000 (married) the tax credit begins to decrease. All of this is based on your modified adjusted gross income.

Please check out this link for a lot more information about this tax credit.