New tax credit for 'first-time' home buyers
The new housing-relief bill will give some people an opportunity to hit a tax trifecta.
Homeowners already enjoyed the ability to deduct mortgage interest and property taxes. They also have an opportunity to exclude capital-gains tax on most if not all profits on a primary residence.
Now there's a new credit or dollar-for-dollar tax reduction for "first-time" homebuyers - a valuable break that will help a lot of people get in the door.
The homebuyer tax credit is a big part of the housing-relief legislation passed by Congress and signed by President Bush. At an estimated cost of $4.8 billion over 10 years, it amounts to nearly one-third of the $15.1 billion in total incentives.
Already, real estate groups are praising the legislation, which also strives to help imperiled borrowers refinance into government-backed mortgages, shore up Fannie Mae and Freddie Mac and more.
"This is the most important housing bill in a generation, " said Keiran Quinn, chairman of the Mortgage Bankers Association. "The tax incentives will encourage potential buyers to get off the sidelines and help stabilize home prices." Gannett News Service
****For more detailed information on this credit contact Tifani at (920) 279-1213 or Tifani@TifaniAndCompany.com.
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