Friday, October 31, 2008

Tax Credit Update for First Time Homebuyers

I have received information from Utah Housing that if a buyer utilizes Utah Housing (either the First Home or the First Home Plus), that they cannot ALSO do the $7500 tax credit! It is either one OR the other, but not both.

After receiving this information from Utah Housing, I called and they explained to me that it has to do with the tax relief status of how Utah Housing receives the money through their arrangement with IRS that this is called 'double dipping' if the buyers use both the Utah housing AND the tax credit.

We will need to do analysis on the buyer's individual situation to find out which direction benefits them the most: ie) using Utah Housing or using the tax credit.

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