Details of $7,500 Tax Credit/Refund

Now of course there is some fine print with the $7,500 tax credit that you may be eligible for and here is some fine print you must be aware of—

· There are income limits for this tax credit that begin at $75,000 for individual taxpayers and $150,000 for married filing jointly taxpayers.

· You can’t buy a home from a family member.

· You can’t obtain a mortgage from CHFA, a down payment assistance loan type, and receive the tax credit.

· You must own the home at the end of that taxable year. Believe it or not this has come up with one of my clients already.

· If you are married filing jointly both spouses must not have owned a home in the last 3 years.

· If you are married filing separately, then one spouse could take a $3750 tax credit.

· It 2 or more unmarried people buy their first home together it appears and I assume that each person would get a portion of the $7,500 tax credit. For example, 3 buyers each would get a $2,500 tax credit. This is not set in stone however.

· Please consult your tax advisor for more details and realize some of these details may not be worked out yet.

One other great benefit of this bill is even if you buy a home in the first 6 months of 2009 you can receive the credit and refund on your 2008 tax return.

This bill comes at a great time in Denver for first time home buyers as it appears that our market has already hit bottom and in some parts of town home prices never did drop (Wash Park, Platte Park, Stapleton, parts of Highlands Ranch, parts of SW Jefferson County).

So take advantage of this great offer by June 30, 2009.