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Making the Most Out of the Home Buyers Tax Credit

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By : Faith Warner    99 or more times read
Home buyers like you already have the chance to decrease their taxable income or obtain credit from their purchase. The government and the IRS have worked together in order to devise ways to encourage more property acquisitions and stimulate the real estate market. One of the policies that they were able to come up with is the home buyers’ tax credit. It was implemented in order to reward those who are brave and wise enough to invest on a real estate property. If you want to get your tax credit, you should know some important things about its dynamics first. Here are some of the things you should know about tax credit in order to make the most out of this fantastic opportunity.

Qualifications by the IRS

Not everyone would get the chance to grab tax credits. If you want to determine whether you are qualified for this grant, you should know the different qualifications that were posted by the IRS.

There are separate qualifications for single and married taxpayers. Single taxpayers can be entitled to tax credits if they were able to buy a house between January 1 and November 26, 2009. They should also have a specific modified adjusted gross income of $75,000. Meanwhile, if their purchase was finalized after January 6, 2009 should possess a $125,000 MAGI. Lastly, they should also be a first-time home buyer, an individual who did not acquire any property three years before his current purchase. Those who meet these guidelines automatically qualify for an $8,000 credit.

Those who were not able to qualify as first-time home buyers still have the chance to obtain tax credits. However, they should have lived in their previous property for at least five years. In addition, their new house should have been purchased from November 7 to April 30, 2009. If they possess this characteristic, they can demand the $6,500 tax credit from the IRS.

As previously mentioned, there are different guidelines for married taxpayers. If you are already married, visit the IRS website for more information about the guidelines designed for married people.

Rushing for an immediate purchase

Some people immediately rush into buying a home once they hear about the home buyers’ tax credit. However, you should not drag yourself into making a property purchase without assessing your financial capabilities. If you are not yet ready to finalize a real estate deal, you should not force yourself into something this serious.

Filing your tax credit and reports

The last thing that you should consider is the appropriate way of filing your credits and reports. There is no need to file your tax credit with your tax report. If your report might be delayed because of waiting for your tax credit, you can actually file it even before you have finalized your tax credits. By doing so, you will not miss any deadline and you can conveniently file an amendment after a few weeks. This amendment would help you claim your tax credit on a later period.

Meanwhile, you should also get more information about partial credit grants. You can actually get this if your MAGI were your only problem for qualification. Assert your right for a partial grant if you have assessed that you are entitled to it.

By knowing these important details, you can easily make the most out of the home buyers’ tax credit.
Make sure to keep all these things in mind before requesting tax credits from authorities.
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