There are a host of financial incentives provided by the federal government to encourage people to buy their own home. The most important and largest of these is the one included in the Worker, Homeownership and Business Assistance Law of 2009. In accordance with the provisions of this law, an amount of USD 8000 is extended as a credit amount tax to skilled workers for the first time. home buyers. This is a great monetary benefit for first-time homebuyers, since one does not have to pay this amount until the property is sold or is not used as the primary residence of the beneficiary who claimed the tax credit.
What are the necessary conditions that must be met to qualify for this tax credit? As defined by the IRS, a first-time homebuyer is a person who has not purchased a residence in the three years immediately preceding their purchase. Income levels have been set for single buyers and married couples above which the tax credit is not available. For properties purchased between the periods of January 1, 2009 to November 05, 2009, the maximum income level for a single buyer must be less than USD 75,000 and in the case of couples who are co-owners, the income levels cannot be exceed USD 150,000. Similarly, for sales operations executed from November 6, 2009 to April 30, 2010, the maximum level of income could be USD 125,000 and USD 250,000 for single buyers and couples respectively. You can apply for a joint loan only if neither spouse has bought a house in the last three years. The couple still has the option of taking out a loan by purchasing the home as a sole buyer in the name of the spouse who has not purchased a home in the last three years.
Some important things to keep in mind about the first-time homebuyer credit include the fact that the amount of tax credit available depends on the price of the property. The available tax credit is equal to ten percent of the purchase price of the property, with $8,000 being the maximum amount that can be claimed. The other key point to keep in mind is that not all homes purchased would qualify for this rebate. Only those houses with a maximum price of USD 800,000 would be considered to grant homebuyer credit. To be included on the beneficiary list, you must ensure that you purchase a home by April 30, 2010, sign the necessary contractual documents, and complete the sale by June 30, 2010 to be eligible under this scheme.
The process of filing a homebuyer credit claim is easy. Submit two returns, namely HUD-1 and IRS Settlement Statement of 5405 and walk away with a maximum credit of $8,000 as long as you meet the eligibility conditions set forth by the federal government. The IRS allows anyone who buys a home in 2010 to file an amended 2009 tax return and file their claim.
