Real Estate

$8,000 Tax Credit Coming to an End

In 2009, the federal government extended the First-Time Home Buyer Tax Credit to April 30, 2010. For anyone who is thinking about purchasing a home, this is a great opportunity since prices are down and incentives are up. For first-time home buyers, up to $8,000 in incentives can be had if you act quickly.

Home ownership offers many benefits such as property tax deductions and real estate appreciation. While the real estate market moves in cycles, in general, it appreciates over the years. Currently, with prices being low and starting to rise slightly, it is a perfect time for first time home buyers to get into their first place. Also, interest rates are relatively low and the government is offering incentives for first time home buyers.

According to the law, a first time home buyer is any buyer who has not owned a principal home at anytime during the last three years. Married couples must both be first-time home buyers to qualify for the tax credit. Visit irs.gov for further details about qualifying for the home buyer tax credit.

In order to qualify, the home must be purchased between January 1, 2009 and April 30, 2010. In order to get the full $8,000, the home must have a purchase price of at least $80,000. Additionally, buyers must have a modified gross annual income of less than $75,000. For home buyers making more than that each year, the tax credit is gradually reduced.

Not only does home ownership offer a sense of pride, it is a good investment for your long term financial future. If you are thinking about purchasing your first place, now is a great time to act. Purchase before the April 31 deadline and receive all of the incentives possible.

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