Home Buyer Credit

If you are one of the lucky individuals who was able to purchase a home last year, you may take advantage of the first time home buyer tax credit. This is particularly helpful for reducing overall tax bills. This particular tax credit, signed by President Barack Obama last 2009, is for the amount of $8,000. Of course, there are some factors that you may want to look on to, to see if you are qualified for the first time $8,000 home buyer tax credit. Here are the conditions:

Date of purchase – your home must be purchased on or before the 1st of January 2009 and before the 30th of June 2010.

Main home – you may have a number of other properties, but this particular home has to be your main or primary residence.

How much do you make – you must have an adjustment gross income amounting to $75,000 (single person), or $150,000 (joint).

In the instance you are qualified for the first time $8,000 home buyer tax credit, you can receive a true tax credit of 10% of your main residence’s purchase price. Another benefit of the first time $8,000 home buyer tax credit is, unlike, past first time home buyer credits, the $8,000 credit is not considered a loan, meaning it does not need to be repaid on a certain amount of time.

However, there is still hope for people not qualified for eligibility. The $6,500 home buyer tax credit is given to individuals who have owned and lived in a main or primary residence for 5 of the last 8 years. In terms of actual primary residence purchase, purchase dates are between the 6th of November 2009, and the 30th of April 2010. The sale of these primary residences would need to have been closed by the 30th of June 2010.

Regardless of which tax credit, you would need to also provide some document for verification.

Settlement Statement – this document usually is included upon closure of a sale.

Certificate of Occupancy – as evidence and cross-checking of having the home as your primary residence.

Mortgage Interest Statements, Property Tax Records – if you have multiple homes, these additional documents would serve to show which home is the main or primary property.

Taking advantage of these tax credits can serve you a lot of good for the long run. Make sure that you’ve listed down all the necessary details in order for you to avail the claim. And if you do find out that you’re qualified, properly invest your money on something important. Hope you are qualified, and enjoy your stay.