It’s a great country we live in and you can reap the benefits this year. Congress has passed a new law which permits first time homebuyers who earn less than $75,000 (individual) or $150,000 (couple) to qualify for a special tax credit. If you buy your first home (must not have owned a home in the previous 3 years), you can qualify for a gift from your government of up to $8000.
The tax credit is 10% of the purchase price of the home or $8000, whichever is less. This credit not only reduces your tax liability for the year in which it is used but also serves as a real credit. That is, if you don’t pay enough taxes to use the full $8000, the government will mail you a check for the difference. You could claim the credit this year, even if you have already filed your income tax return by using the new form, Form 9465, to request the credit.
So what are you waiting for? Home prices have dropped the most they have ever dropped in recorded real estate history, mortgage interest rates are at record lows of 5% and you can get paid $8000 by your government when you buy your first home. Is this a great deal or what?
For more detailed information, come to our FREE NO OBLIGATION FIRST TIME HOMEBUYER class or wait for future blogs. “Simple answers to home ownership questions”.