Home builder – Pulte Homes, is more than grateful for President Bush signing the new housing bill into law. This is of no surprise as housing inventories are at record numbers and a lack of demand has continuously driven down home prices. Pulte Homes’ Richard J. Dugas, Jr., president and CEO, is convinced that the $7,500 tax credit for first-time buyers will provide the housing industry a much needed boost.
"We expect the $7,500 tax credit to get more first-time homebuyers off the sidelines and into a home," stated Dugas. "That, in turn, will free up home sellers who can then transition into their next home. Reducing overall housing inventory, both new and resale can help stabilize pricing and benefit homebuilders as well as homebuyers."
The latest tax credit is intended to aid first-time homebuyers who close on a house purchase before July 1, 2009. Married couples with a combined income of up to $150,000 and individual taxpayers with an income up to $75,000 are qualified for the entire amount of $7,500. If, for example, the first-time buyer owes the federal government the amount owed will be reduced from the $7,500 credit. If the first-time buyer is owed money by the federal government, the amount will be added to the check for the tax credit.
This tax credit is basically an interest-free loan that the recipient must repay to the federal government over a 15 year time span, which will begin two years after the credit is received. So, if the tax credit of $7,500 is claimed on the homebuyer’s 2008 income tax return, repayment will begin with the 2010 income tax return at $500 per year.
To find additional information on the latest housing bill approved by the Bush administration be sure to visit federal housing tax credit or the IRS websites for specific income tax information.
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