How is the tax credit for first-time home buyers calculated in the recent federal housing bill?

Question

The most information I've found says there will be "up to" a $7500 credit for first-time home buyers between april 08 and june 09. i just bought a house and am wondering how they figure out what your credit will be--is it based on the price of the home? your annual income? some sort of ratio between these two or other factors? Just a flat $7500 regardless? Can't seem to find this info anywhere! Help much appreciated!

Answer 1

its 7500 but it phases out (just like the 600 dollar credit we got this year) at a certain level of income.   The size of the credit begins to decrease for a single person making 75k a year, and is gone once you are making 95k a year.  Its 150k/175k for couples.

Also it works like an interest free loan: Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale.

Answer 2

this is off the top of my head... I had a staff meeting on Monday and the Partners said its 7500 unless your AGI (adjusted gross income) is above some number.  Probly in the 6 digit range.  This tax credit is really an interest free loan, because you get 7500 now, but pay back 500 per year for 15 years.  That's all I got for now.