First Time Home Buyers in Newton
We've been asked a few questions about the new Stimulus bill and how it affects Newton, Colfax & Baxter Iowa Buyers.
1. Who qualifies for the $8000.00 credit on the purchase of a new home?
You must be a first-time home buyer, which the law defines as someone who hasn't owned a primary home for 3 years. You must buy the home between Jan 1st and Dec 1st of 2009. If you haven't owned a home for past 3 years but your spouse has neither of you qualifies. The New credit does not have to be repaid.
2. I'm planning to buy a home for $50,000. Will I get the tax credit for $8000?
No. The credit is equal to 10 percent of the home's purchase price, up to the maximum of $8,000. You would be limited to $5,000.
3. I'm buying a new home from a builder. Will I qualify for the credit?
Yes, as long as you close on the purchase between Jan 1st and Dec 1st
As always check with your local Tax Advisor before purchasing. Each State also has their own tax laws.