I am not a tax accountant, so I advise you if you are interested in pursuing the first time home buyers’ tax credit that you consult with one to see if it will work for you. Also please verify the facts: this is my understanding of how it works. A first time home buyer is one who has not owned a home in the past 3 years; in order to take the credit one must use the home as the primary residence; the cap is $7,500, but can only be up to 10% of the purchase price of the home; and the home must be purchased between April 9, 2008 and June 30, 2009. This credit is an interest-free loan; it all must be paid back; the payback is $500 per year via the federal tax return over 15 year time period. Buyers don’t have to begin repayments until 2 years after the credit is claimed. If the house is sold during this 15 year period, the remaining credit balance must be paid from the profit of the sale. There are some income limits and it starts phasing out at a modified adjusted gross income of $75,000 for a single person or for each married person if they file separately (not joint return) and $150,000 for married couples filing jointly. However, there is still some credit given for singles up to $95,000 and for joint filers up to $170,000.
This tax credit, combined with the advantage of lower interest rates than I have seen in quite some time, is a rare opportunity that I hope your family or friends can take advantage of.
A luxury condo in the Tucson Foothills may be the perfect residence for the first time home buyer. In the past few years I have not recommended buying a luxury condo in the Tucson Foothills because I felt the prices were going to go down. However, now I think it is a great time to buy a Foothills condo especially since I have witnessed tremendous deals of luxury one bedroom condos from the low $100,000s and 2 bedrooms from the mid – $100,000s to low $200,000s. Many are very upgraded and back to the Catalina Mountains or Ventana Canyon. Some are within walking distance to the pristine Sonoran Desert wonder of Sabino Canyon. To view luxury Tucson Foothills condos for sale give me a call at 520-918-2410.