Indiana First Time Home Tax Credit

Revisited…

Lately, I have been getting some calls and emails about the Indiana First Time Home Buyer Tax Credit from some very confused Indiana home buyers and agents alike.

I want take just a moment and straighten out a few of the misconceptions that are there.

Lets set the record straight once and for all and let me be the guy that does it.

Here are the provisions for the Indiana First Time Home Buyer Tax Credit

It ENDS December 01, 2009 – now unless Congress comes out and changes that here in the near future, you will need to close on your first Indiana home on December 01, 2009.

If you close on 12/02 and you don’t get it.

• First Time Home Buyers only – you cannot have owned a home in the last 3 years
• The Tax credit is is 10% of the homes COST not worth, but homes COST at the time of Purchase

Some simple math $80,000 home times 10% = $8000

• The Maximum credit allowed is $8000

More simple math $170,000 home times 10% = $8000 (hey, our gov’t is involved here, we are lucky to have roads)

• Adjusted gross income of no more than $95,000 single and $170,000 joint

Partial credit is received when you make more than the above amounts

• Credit is taken when you file your tax return

Cannot be used at a part of down payment or taken as a credit at closing; you will either pay less in taxes or a get a larger refund.

Now, I am a mortgage guy, I am the Indiana FHA Expert, and I am not a tax guy.  Please, consult a tax professional.  A tax pro can save you headaches and can find you deductions that you may not know that you deserved.  If you would like a professional referral just ask for one and I will be more than glad to give you one.

Dave Woodson
The Indiana FHA Expert