Using The First Time Home Buyer Tax Credit During 2009
Oct 29, 2009 Online Tax
A house is without a doubt the most expensive thing most people will buy in their lifetime. Since some can easily total 5-10 times the cost of your average brand new car, this puts them out of reach for some consumers. With the new United States tax credit, families might still have a chance at owning a home.
Act with haste if you plan on buying a home in the near future. It is not certain if the tax credit is going to be extended onto the year 2010. If you miss your opportunity, you could be missing out on as much as $8,000 towards your new home. Although logic would assume that there would be a new tax credit enacted for the future, there is not yet any idea if this will happen or if it does, if it will be as beneficial.
When you go to the department store and save 10% you will probably end up saving $5 to $10 on most items. Since homes are so very expensive, the same 10% you get from the tax credit in place could save you thousands. The tax credit is limited to a total of $8,000, but obviously saving $8,000 relieves quite a burden for first time home buyers.
Not everyone will be able to obtain the tax credit. If you make too much income in a year, you won’t be able to apply. If you are married the rules are a bit different, and instead of a single income the government will look at combined income. In addition, the purchase must be a first purchase for you and your spouse, if you have one, in order to qualify.
Some confuse the 2009 first time home buyer tax credit with a loan. This is because the tax credit of the previous year was more like an interest-free loan that had to be repaid. You can be reassured that the 2009 tax credit will never have to be repaid. The money you obtain from the government will be yours to keep, as long as you qualify.
Most types of homes are eligible for the tax credit. Even mobile homes or boat homes are able to qualify for the tax credit. If you have an odd living arrangement, you should consult an accountant, who can tell you whether or not the living arrangement counts towards the credit. The only stipulation is that you can’t buy the home from a relative.
Closing Comments
Getting a house for you and your future family is very exciting. Remember that the process can be a long one, so you should get started as soon as possible. Talk to a real estate agent and start looking at some homes in your area and find an accountant in your area.
Learn more on Kansas City Tax Credit and Missouri Tax Credit Broker.
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