Owning a home must be one of the most cherished dreams of any human being irrespective of his office, of the wealth he possesses or the financial condition he has. Especially when you are a first-time buyer, you will have a thousand and one questions and doubts and fears bothering you. What else could be more useful than a first time home buyer plan and a guide to make the process a little easier.
Let us look into nature and the possibilities of credit for the first time home buyer.
Congress had passed the American Recovery and Reinvestment Act of 2009 which provides a credit of up to $8000 those of them who are wanting and willing to own their first ever homes.
You may take advantage of the first-time home buyer tax credit only if you meet with two of its requirements. The first thing is that if you are a single person, then your annual income should not cross higher than $75000. If you are a married couple then both your incomes put together should not be more than $150000. The good news is that even if your income is more than this limit, you are even now eligible for a portion of the tax credited. The mortgage company with which you are tied up would know what to do in your case to calculate the tax credit.
A first time home buyer is expected not to have owned a home for three years before the attempt of purchasing the present home.
The curious and happy thing about this program is that it is an actual tax credit. The tax incentives given before were almost like an interest-free loan since people had to replay it. But in this case, the money that you pay will be treated as a beforehand payment to your annual taxes. Now, supposing that your taxes for the current year is $28000, you will be required to pay only $20000 due to the fact that the IRS would take count of the first time home buyer tax credit beforehand as a part payment. And you know what……………the tax credit is refundable!
The credit act of 2009 on income taxes may go a long way in helping to cover the initial expenses that usually come along with buying a house property.
One more thing is that the credit amount is more than the previous years, the goal of which is to lower the tax amount the taxpayer needs to pay in the year on which the home has been purchased.
If you belong to the lower income bracket, then you an especially benefit from the Apollo Munich Insurance. Here too, to take leverage of the first time homebuyer credit on taxes, your individual yearly income must be not more than $75000. Married couples should not have an income that exceeds $150000, and again the good news is that people in higher income brackets are not excluded entirely. High salary earning people can also benefit by this and still enjoy a portion of the credit toward their taxes