First Time Home Buyer Minneapolis $7500 Tax Credit

Here is a great deal. You can purchase a house by July 1^st 2009 and if you’re a first time home buyer you get a $7500 tax credit on your 2008 taxes or your 2009 taxes. That is great. So a purchase you make today will help offset your tax liability from last year. Say you owe $4000 in taxes for 2008. If you buy a house right now you can get that $7500 tax credit and reduce your liability and actually get $3500 back from the government. You can use that to help fix up the house, pay off your credit card debt, or invest in your financial education. Also, with the tax credit you don’t need to apply, all you have to do is claim the credit on your federal income tax return. The downside to the tax credit is that it does have to be paid back over a period of 15 years. But you don’t have to start paying it back for two years after you take the credit and there is no interest charged on the credit. But if you sell your house before you pay it off, then the government just takes the remaining balance off the proceeds from the house. I really like this program just for the fact that you get a $7500 tax credit for 2008 or 2009 taxes, which can save you a lot of cash right now. Plus, you get the additional tax benefits of purchasing a home and potential to generate income from the home if you purchase a duplex. If you have any questions about this program or are a first time home buyer Minneapolis, give me a call. Thanks a lot.