Benefit from Home Buying Tax Credit
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Posted on | November 9, 2009 | No Comments
In order to encourage more to purchase a property an incentive is devised called the home buying tax credit. This are given to the first time home buyers. This offers either a tax incentive of as much as ten percent of the value of the property purchased or $8,000, whichever is lower. Having this in mind after shelling out a significant amount, is surely a wonderful consolation.
Qualifying for this:
As mentioned earlier, there are conditions that you have to satisfy first. One is that you have to be a first time home buyer. This is a strict condition. If you are not a first time buyer, do not attempt to apply for the tax credit.
Who is the first time home buyer? In order to be considered one, you have to make sure that you have not purchased a principal residence in the last three years. This goes the same for your spouse. Note that the purchases made by your spouse shall be monitored as well. You can still qualify if you have purchased an investment property or a vacation home.
There is also a specified period for this arrangement. First time home buyers should make their purchase within January 1, 2009 to December 31, 2009 in order to benefit from the tax credit.
The income shall be considered before one can apply for the tax credit. If you are a single filer, an income of not more than $75,000 is required. For joint filers, the income should not exceed $150,000. Since this is the case, you have to evaluate your earnings first before you apply for one.
There are more benefits in other states as they offer a bridge loan. Here, the qualified applicants can loan for an amount with a little or no interest at all. Payment shall be made with the tax credit when the loan is due.
In order to benefit from this, you have to fill up a form provided for this purpose. The filled up form will be submitted together with the documents that will prove your purchase of the property. So make sure have the necessary documents. Keep in mind that the tax credit is refundable and in order to benefit from the tax credit, you should keep the property for at least three years.
Owning a home today offers a lot of convenience. If you plan to own a home, now would be the best time to look for one.
By: Roby Pagong
Buy a house in westchester
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