A great opportunity of 2008, that will be available until July 1, 2009, is the FIRST TIME HOME-BUYER TAX CREDIT, which was part of the Federal Housing Bill passed on July 30, 2008.
Up to $7500 can be credited toward your tax bill for first time home buyers who qualify and have purchased their home between April 9, 2008 and July 1, 2009. (There are income and home price restrictions.)
This credit will reduce income tax liability on a dollar for dollar basis; however, it is similar to a no interest loan. The credit amount is repaid in increments of 6.67% of the total over 15 years. Repayment would begin on your 2010 tax return due in 2011 if you claim it on your 2008 tax return, or on your 2011 tax return due in 2012 if you claim it on your 2009 tax return.
If you purchased a home after April 9, 2008 or are planning on buying a home, you should consider taking advantage of this credit.
Please click the links below for printable details about the plan.
tax-credit-frequently-asked-questions
Chicago Real Estate Notes will regularly highlight opportunities that will help you make the most of this market.
Please check the Market Statistics tab for a current analysis of Active, Sold and Under Contract listings by neighborhood.
