Because of the recent recession that has hit the economy of the country; the housing industry experienced a dip in sales, causing prices of properties to go down as well. The government, realizing the importance of the housing industry in the country’s economy, implemented several laws that aim to boost property sales.
In 2008, the law on Tax Credit for Home Buyers was initiated and by 2009, was revised further. The revision in 2010 saw new legislation being created for tax credits, based on newer developments in the economy.
In 2010, the Tax Credit for Home Buyers law was revised again to lessen the strict guidelines for qualifying for the tax credit. However, one must get to know the Tax Credit for Home Buyers law thoroughly in order to avoid any future issues in buying your next home. Below you will find a summary of what the Tax Credit for Home Buyers law entails.
The status of individuals and their incomes are considered with clear guidelines, and the facilities are meant for first-time buyers who have not been owners of a main or primary property in the previous three years. Gross income for a buyer who is single must be between $125,000 and $145,000 and married couples must be earning between $225,000 and $245,000 to qualify.
Additional restrictions include an age limit and overall home price. An individual must be 18 years of age at the date of the closing of a property in order to qualify for the tax credit. In addition, homes that are prices over $800,000 are not eligible for the tax credit.
Because the revised law is only applicable for the home purchases made after November 6, 2009, the 2010 tax credit for home buyers requires a proof of purchase with a properly executed settlement statement to their tax return or experience great inconveniences with government officials.
The revisions to the Tax Credit for Home Buyers law can be confusing. However, there is a more detailed explanation of the law and its guidelines and revisions is available on the IRS website.
The IRS website also has instructions on how to apply for the tax credit if you qualify as well as a frequently asked questions section to help you understand the law. The website provides a home owner with all the requirements and qualification regarding the tax credit.
The writer has been contributing articles with respect to buying homes for the previous three years. Moreover, this individual likes writing on NYC real estate topics, including Hudson Heights apartments along with Alphabet City apartments for rent.
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