You may not know it, but as a new house purchaser you could be entitled to tax credits. This will depend on which state you reside in or whether you qualify for federal credits.
State tax credits for new home buyers vary in regards to details and time limits. If you are planning the purchase of a new home, check to see what tax credits you might be able to qualify for.
Federal tax credit programs are often used to stimulate new home sales and to boost the overall economy. These tax credit programs have been used recently as a stimulus for the real estate industry.
You need to do some research to see if you are eligible for the federal credit, as this could be of significant benefit. You will receive the credit when you file for your annual federal return.
Although in many cases tax credits have been reserved for first time home buyers, recent tax credit programs have been expanded in order to allow more home buyers to benefit. However, in order to qualify for a tax credit, the requirements must be met and the home must be purchased within the designated time frame.
Other requirements of this expanded program include following the set limits to your modified gross income. There are also residency requirements providing that the home you purchased is your principal residence.
The term “first time home buyer” can vary in meaning, depending on the tax credit program. In the case of the most recent tax credit, this meant that either the person or their spouse could not have owned a home within three years of the purchase of the qualifying home. The most recent tax credit program was also available for long-time home owners under certain qualifying circumstances.
To qualify for tax credits under the First-Time Home Buyers’ Credit, you must have purchased or entered into a contract to buy a principal residence not later than April 30, 2010. A leeway of one year is extended to members of the U.S. military and some federal government employees who are presently serving outside of the United States, which means they can buy a home not later than April 30, 2011 and still qualify for the tax credit.
This writer has been providing advice with respect to taxes for the past two years. Furthermore, this author enjoys publishing articles with respect to NYC real estate subjects, such as East Village lofts and Union Square lofts.