The year 2009 is great year for first time home buyers in the United States. This is because a new Housing and Recovery Act has been launched to aid the plummeting housing industry. This federal tax credit offers a great deal to first time home buyers because they can receive up to $8000 return in their real estate expenditure. This is a good opportunity for families who would like to settle down in their own homes.
What exactly does it do?
The $8000 Federal tax credit provides up to 10 percent tax credit from the total amount of real estate to be purchased. The $8000 is the maximum credit amount that a home buyer can avail. This $8000 federal tax credit for first time home buyers provides a full 10 percent credit or a maximum of $8000 upon purchase of real estate. This tax credit is available only when you purchase a house within the time between January 1, 2009 and December 1, 2009. The tax credit will be free as long as the buyer owns the purchased home for at least three years.
Who can avail the federal tax credit?
The government has specified that the $8000 Federal tax credit applies to first time home buyers only. The first time home buyer in the statement is defined as a person who has not owned or purchased real estate for the last three years. The first time home buyer is also required to live at the purchased home for three years or the credit will become repayable.
Is there an income limit to receive the federal tax credit?
There is a specific income requirement to receive the federal tax credit. The modified adjusted gross income or MAGI for married couples should only be under $150,000 per year. As for singles, or unmarried, the modified adjusted gross income should be under $75,000. However, if the modified adjusted gross income will exceed the specified, a home buyer can still avail a partial tax credit subject to conditions and an income maximum.
With the newly imposed housing and recovery act, a lot of families who do not own their own homes yet can seize this opportunity to purchase homes. The current condition of the housing industry makes it easier to purchase newly constructed homes at a low price due to increased supply yet little demand. Resale homes are also great buys in this buyers market. For families wanted the dream of home ownership, this is a great time to buy and claim the $8000 federal tax credit.
For a more complete set of Q&A's, please go to www.8000Dollars.com and complete the form. If you are in the Central Iowa / Des Moines area, please contact me for a personal consultation. For more home buying selling information go to www.NigelC.com
Nigel Chapman, Managing Partner, RE/MAX Real Estate Concepts, 550 36th Ave SW, Suite BB, Altoona, IA 50009. 515 321-8094. Nigel@RealEstateConcepts.net. Each office independently owned and operated. Licensed to sell Real Estate in Iowa