With the US government trying to boost real estate sales through tax credit foreclosures, there has never been a better opportunity for buying a property. So if you are a first time home buyer taking advantage of the ongoing housing tax credit is the smartest move you can ever make.
The American Recovery and Reinvestment Act has provided a great opportunity to prospective home buyers to fulfill their dreams of owning a home at highly reduced and affordable rates with the help of a tax credit which can help supplement a considerable amount of the property price.
Benefits of applying for Tax credit foreclosures
With the opportunity of credit benefits of up to $ 8000 offered by the US government for buying foreclosed properties, first time buyers need have the best option of affordable housing at highly reduced prices.
By taking advantage and qualifying for tax credit foreclosures you can even manage to make a down payment on the foreclosed property with the credit amount.
When you combine the additional tax savings along with the savings incurred on buying a foreclosed property which are priced as low as half of the market value, a homebuyer can actually get a deal at an unimaginable bargain price.
Important eligibility criteria
But before you apply for the purchase of a foreclosed property there are some important guidelines that you must pay attention to in order to qualify for tax credit foreclosures:
Credit amount – The tax credit is calculated as 10 percent of the home’s purchase price up to a maximum of $8,000.
Eligibility – Only first time home buyers are eligible for the tax credit. If you are single with an income of $75,000 or married with a combined income of $150,000 or less, you qualify for the full $8,000 credit.
Income limit – Single taxpayers having an income limit of $75,000 and married taxpayers filing a joint return of $150,000 or lower are eligible for this credit.
Modified Adjusted Gross Income (MAGI) – In the case of homebuyers with a modified adjusted gross income (MAGI) of more than $75,000, and married homebuyers of more than $150,000 , the tax credit is still applicable but is reduced.
Melanie Hogeveen is an expert writer in the field of real estate especially foreclosures and has been doing research on foreclosures for the past several years. She is renowned for her advices and tips on buying foreclosures. For more details please visit Tax Credit.
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