As you may have read in our recent blog Put on Your Shopping Shoes, Ascension Home Buyers!, the homeowners tax credit has not only been expanded but been made better.  Greater Baton Rouge, including  Ascension Parish and East Baton Rouge Parish, have economies that are doing better than many places and so offer a stable place to settle.  If take a look at the pictures in we include here, you will notice that the area is also a beautiful place to call home.

Who is eligible for this tax credit?

First home buyers and repeat buyers are eligible for a credit.

• First time buyers, which includes those who have not owned a home for three years or more.
• Current homeowners who have owned and lived in a home a primary residence for at least five of the past eight years prior to purchasing the new home

Which homes qualify for the tax credit?

Any home that will be used as a principal residence will qualify for the credit, provided including single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.  However...

• The purchase price must be less than $800,000
• You must use the home as your principal residence -no vacation homes or investment property
• You cannot buy a home from a relative or spouse

Does the tax credit have to be repaid?

NO - this is a tax credit that does not have to be repaid.

How is the tax credit figured?

The tax credit is 10% of the home's purchase price, up to $8,000 for first-time home buyers and $6,500 for buyers having already owned a home.

When must you purchase the home?

To qualify for the home buyer tax credit, the principal residence must be purchased on or after January 1, 2009 and before April 30, 2010. However, you have until June 30, 2010 to close.

Is eligibility based on the home buyer's income?

Yes. Single taxpayers must have income of $125,000 or below to qualify while married couples income must be $225,000 or below. This is an increase from the previous bill.

How does the homeowner figure their tax credit?

The credit will come to you as a refund once you have filed your taxes. You must complete IRS Form 5405 to figure the amount of credit you will receive and claim it on your income tax form.

You must provide documentation that you purchased a home.

You can also check these government sites about the Home Buyer Tax Credit for more details:

• Frequently asked questions about the $8,000 first-time home buyer tax credit.
• Frequently asked questions about the $6,500 tax credit for repeat home buyers.

Sandy and her team can help you answer any questions you might have about the tax credit and then show you a wide selection of beautiful new and pre-owned homes in the Greater Baton Rouge area, including Baton Rouge, Prairieville, Gonzales, Denham Springs, Watson, Walker, Central, Greenwell Springs, Zachary, Baker, Port Allen, Brusly, Geismar, and St Amant.