Why is the Government doing this?
It is a pretty simple concept to understand. If the Government can pass legislation that grants a tax credit to first time home buyers…it just might stimulate people to buy houses! When people start buying houses it starts a trickle effect on the economy and in the end helps everyone!
Who is a First-Time home buyer?
To be deemed as a First-time home buyer the purchaser or his/her spouse may NOT have owned a home during the passed 3 years from the date of purchase of your new home.
How is eligible for the Tax Credit?
If you are a first time home buyer that purchases a home between January 1, 2009 and December 1, 2009.
Are all properties eligible?
NOL This is for primary residences only. This includes single-family homes (example stick built or manufactured), condos, town homes and co-ops.
How much is the Tax Credit?
The maximum Tax Credit is $8,000. There are 2 factors that determine the amount First-Time Home buyers will get.
- 1) The purchase price of your home. The Tax Credit is 10% of the purchase price of the home, up to $8,000.
- 2) Buyers Income- Single men and women with income up to $75,000 and married couples up to $150,000 can qualify for the maximum tax credit of $8,000.
What if we make to much money?
If you are single and make between $75,000 and $95,000 or married and make between $150,000 and $170,000 your tax credit decreases but you still may qualify for a reduced tax credit. If you make over the amounts stated you do not qualify for any credit.
Do I have to pay back the Tax Credit?
No!!! J As long as you occupy the home or at least 3 years you do not have to pay it back. However, if you sell with-in the first 3 years the credit will be recouped on the sale of the home.
Since laws change every 27 seconds it seems like, if you are interested in the First Time Home Buyers Tax Credit, please call us or contact your local Certified Public Accountant to see how this affects your personal situation. Visit our Murphy NC list of local Recommended Certified Public Accountants.
-Written by Jessica Poltrock of The POLTROCK TEAM – Call us toll free at 1-866-687-7496 today!