The 2009 First-Time Home Buyer Tax Credit Easily Defined

29.10.2009 | Author: Chris Channing | Posted in Finances

You can’t put a price on providing for your family. But when you are looking for a property to house them in, you will find resistance in the form of financial responsibility. The first time home buyer tax credit will help you afford a home that you and your family can comfortably live in and afford.

The first time home buyer tax credit currently in place is only going to last until the end of December, 2009. If you are planning on buying a home, acting fast is going to be a requirement. Sometimes the paperwork necessary in buying a home can be delayed, and if you aren’t before deadline enough, you could lose your chances at obtaining the tax credit. It’s unclear if the tax credit will be available in 2010.

The amount of the tax credit is going to be 10% of the purchasing price of the home, up to an amount of $8,000. Since the average home is easily slated at around $100,000, most of the applicants will likely be hitting the $8,000 maximum. When financing for the home, the $8,000 saved could easily take off a year or more in payments.

The first time home buyer tax credit of 2009 is only for those who have not purchased a home before. All others will sadly be disqualified from receiving it. The income of you and your spouse, if applicable, will also be grounds for allowing or disallowing the credit. Accountants will know how to classify your qualifications to see if you can apply or not.

The tax credit is not a loan of any sort. Unlike the tax credit of 2008 that applied to first time home purchases, this tax credit will never have to be repaid to the government. Previously the tax credit was viewed as a loan that was devoid of interest, which was beneficial, but not to the effect of the tax credit we currently have in place.

Don’t purchase a home before consulting your accountant to see if it qualifies for the tax credit. Some types of homes may be admissible, while others are more questionable. The mobile home is an example of a home that can qualify, and so too can a boat home. In general any living space that a family can live in qualifies, but it’s good to be sure just in case.

In Conclusion

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 Syndicate Historic Tax Credits and Missouri Tax Credit Projects.