If you are thinking about purchasing your first home, you may be eligible for the First-Time Homebuyer Tax Credit which went into effect under the American Recovery and Reinvestment Act of 2009 and has now been extended until June of 2010. The tax credit is intended to immediately stimulate home buying.
If you qualify, you may be able to reduce your income tax liability or get a larger refund for the year of purchase by claiming the credit on your tax return. Details include:
-The full tax credit amount equals 10% of the purchase price of the home ($8,000 maximum)
-The money does not have to be repaid as long as you remain in the home for at least three years
The tax credit applies to the purchase of any single-family home that will be used as a principal residence including condos, co-ops, town homes, etc.
Any individual (and if married, his or her spouse) who has had no ownership interest in a principal residence during the last three years may apply for the tax credit, as long as the following income limits are met:
-Full credit for single taxpayers with incomes up to $75,000 ($150,000 on a joint return)
-Partial credit is available for single taxpayers with incomes between $75,000 and $95,000 ($150,000 to $170,000 on joint returns)
This is a great time to take advantage of lower interest rates, lower values and now the Tax Credit! Now is the winning time for the homebuyer.
-R Norman-
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