Source: Albuquerque Journal
Publication date: August 25, 2008
By Your Taxes JAMES HAMILL For the Journal
The recently signed housing legislation, designed primarily to help with the troubled mortgage markets, includes several other provisions that may affect a broad range of homeowners.
First, a new tax credit will apply to “first-time homebuyers.” The credit is the lesser of $7,500 or 10 percent of the purchase price of a principal residence. The credit applies only to homes purchased between April 8, 2008 and June 30, 2009.
“Purchase” means an actual closing, not just a contract to buy.
If the home is purchased in the first 6 months of 2009, you may elect to treat it as purchased by Dec. 31, 2008, so the credit is available on your 2008 tax return.