The law defines "first time home buyer" as a buyer who has not owned a principle residence during the three-year period prior to the purchase.

Albemarle Area Association of Realtors is reporting home sales for

Oct. 1, 2007 to Oct. 31, 2007 as 39 homes sold - average price of 181,325.

Oct. 1, 2008 to Oct. 29, 2008 as 13 homes sold - average price of 157,808.

Who is eligible to claim the 7500. tax credit?

First time-home buyers purchasing any kind of home - new or resale - are eligible for the tax credit.

Features:

Ten percent of cost of home not to exceed 7500. dollars.

Eligible Property:

Any single family residence that will be used as a principal residence.

Refundable:

Yes, reduces income tax liability for the year of purchase.  It is claimed on tax return for that year.

Income Limit:

Yes, Full amount of credit available for individuals with adjusted gross income of no more than 75000. (150000 on a joint return).  Phases out above these caps (95000 and 170000 respectively)

First Time Homebuyers Only:

Yes.  Purchaser (and Purchaser's Spouse) may not have owned a principle residence in 3 years previous to purchase.

Effective Date: 

Purchases on or after April 9, 2008

Termination:

July 1, 2009

 

Tax Credit Q and A to Follow