Does anyone know the income requirements or phase out for the new Housing Bill for first time buyers?

Asked by Jeremy, San Francisco, CA Fri Aug 1, 2008

I understand that it is 75K for single and 150K for married but I want to see a chart on it if anyone has that available. I am a first time home buyer with a yearly income of around 135K with my wife and we want to see what the benefit based on this plan would be for us. I know the credit is capped at 7500 or 10% so I want to see where we would stand with our income.

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6
Will, , Atlanta, GA
Sat Aug 2, 2008
For aspiring home owners who find their goal stubbornly elusive, newly enacted legislation providing a tax credit of as much as $7,500 for first-time home buyers might just be the opportunity of a lifetime.

But like so many of the good things in life, time is of the essence for buyers who want to take advantage of this outstanding opportunity. Only homes purchased on or after April 9, 2008 and before July 1, 2009 are eligible. Use the links below to learn more about the tax credit.



First-Time Home Buyer Tax Credit at a Glance

The tax credit is available for first-time home buyers only.
The maximum credit amount is $7,500.
The credit is available for homes purchased on or after April 9, 2008 and before
July 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
2 votes
Tina, , Virginia
Mon Aug 4, 2008
This website has posted an answer to your question.

Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. The result is $3,750.

Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,625.
1 vote
Debt Free Da…, , 85260
Tue Aug 12, 2008
I hope this information will help.
0 votes
Gerald, ,
Fri Aug 8, 2008
First NO chart is necessary for your circumstances it appears that you qualify. Now here is a suggestion for your consideration. Since the $7500 is a tax credit THE immediate advantage is that YOU Can use this and the standard tax benifits to STOP YOUR WITHHOLDINGS IMMEDIATELY giving you the $$$ for the monthly payment for YEAR 1 and probably reduce YEAR 2 mortgage payments by half and YEAR 3 the normal tax benifits. I suggest Using e.g. a 40 year amortization which reduces the monthly by about $50.00 per $100k this MEANS you can take what you have been paying as rent and rebuild your downpayment saving OR payoff any credit card amounts Its been a long time since such a great opportunity has been in the first time buyers position to become a home owner. Start LOOKING.
0 votes
Eric Bouler, Agent, New Orleans, LA
Thu Aug 7, 2008
You will have to remember that this gets paid back over a 15 year period. If you sell and have no gain then its not due. Its like the rest of the story type of thing. However it all depends on what you do with your credit
0 votes
Debt Free Da…, , 85260
Tue Aug 5, 2008
0 votes
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