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Qualify for the First-Time Home Buyer Stimulus

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By : Fredrica Smith    99 or more times read
There is more reason for buyers to purchase a home today. Now, they can enjoy the tax credit program developed by the government. First-time home buyers will enjoy a tax credit of as much as $8,000 when they file their tax return. You have to qualify for this though. If you have purchased a house within the year, check if you can benefit from this home buyer stimulus.

Note that this is for first-time home buyers only. Moreover, the program is for those buyers who purchased their principal residence from January 1, 2009 to December 1, 2009.

This is for those who made a purchase of the principal homes during the specified period. This means that you will not qualify if you purchased the property in 2008. The date of your purchase will depend on when the actual transfer of ownership was made, or the closing. If there are different manners in which you acquired the property, consult a tax adviser regarding your circumstance. There are other provisions that you can work with.

In order to qualify, you have to be a first-time home buyer. How can you be one? You are a first time buyer if this is the only principal residence you have purchased in the last three years. You cannot qualify if you have already purchased one, two years ago. However, if you purchased a vacation home or an investment property, do not worry as these are not considered principal homes.
Keep in mind of the income limit as well. If you are a single filer, your income should not exceed $75,000 in order to qualify. If you are a married couple who are jointly filing, your income should not be more than $150,000. You can apply some adjustments. Consult a financial adviser for this.

The tax credit is usually determined as the 10% of the value of the property purchased. If it is more than the $8,000 limit, then the government will only refund $8,000. Yes, the tax credit is refundable. This means that you can still apply for a claim even if you do not have a lot of tax liability. Aside from being refundable, it is also collectible. The government can collect the credit back if you lose ownership of the property before your third year of ownership. To avoid this, you have to retain ownership of the property for at least three years. There are certain exemptions to this. An example would be losing your home because of divorce.

If you have filed your tax return early this year, you can still amend it. You need to fill up a form. Ask a tax specialist for this to ensure proper amendment of your tax return.

The HUD has an additional gift for borrowers insured by the FHA. They can apply for a short term loan amounting to as much as $8,000. Through this, they do not have to wait for the filing of their tax return before they can benefit from it.

Today, there are more reasons to purchase a home. Prices and interest rates are lower and there are incentives like this to look forward to.
Choose a home in Las Sendas Real Estate. You may also consider Eagle Mountain Condo for Sale and Val Vista Lakes rental Homes.

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