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Real Estate Beginner's Guide - Home Buyer's Tax Credits

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By : Flynna Jones    99 or more times read
For people in the US, there are home buyer’s tax credits which are given to them. These credits actually began on second quarter of 2008 until middle part of year 2009. But the government thought of extending it until second quarter of this year 2010. This extension will give way to the transactions which occurred in the later part of the specified period of time.

People who are said to qualify for this provision are those buyers who do not own a house in the last three years from the date that they engaged in home buying activity. They are given 10 percent of the actual selling price of the house up to $8,000. As of this time, most homeowners who are staying in their house for five years straight are also qualified to get tax credits.

Properties which are said to qualify for tax credits are those with selling price of not higher than $800,000. Some of the structures are townhouses, newly-constructed properties, standard-sized houses, condominiums and more, to name a few. As long as the structure is made to be the main residence of the owner, that can enjoy a tax credit.

Rental establishments and vacation homes are not eligible to enjoy tax credits. As you go on with the definition of tax credit, it is actually an amount that is refundable. Another way to understand it is, if for example you have income taxes lower than the credit amount, the government will give you back the difference of the two. So, you can receive something, despite spending a lot in acquiring a home.

The tax credit will actually save you from repaying it until you thought of abandoning the house or sell it within three years from the date of acquisition. A lot of individuals have engaged in the agreement within the specified dates to avail such credits. For those first time home buyers or those who own a house, if you have purchased the property last May or June 2010, you will still need to establish that you have indeed bought the property within these dates. There are several important documents you need to submit in order to comply with the requirements. For people in the military and intelligence group, they are given another year to purchase a house and be eligible for the said tax credit.

When filing and claiming for this benefit, you will need to present important papers, and mail them. There are several ways on how to gather all these documents. As soon as the home buyer has started to file, they can already get the credits after six weeks from the date of filing. More and more people are applying for this provision and thus the waiting time for the credit to arrive gets longer and longer. But everything is still worth the wait because at the end of it all, you will be getting something. This is something you can look forward to at the end of your home buying process.
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