When you finally go through with looking for and purchasing your first place you will have to go through a number of processes you have never dealt with before. First, you are going to have to find someone who will finance your loan, and once this is done you will then need to find the house you want to buy and make sure that it is structurally sound and reasonably priced.
It won’t be long until you have a gigantic stack of papers that need to be filled out. This is the first time you have ever bought a house, and you may not know all the tricks quite yet. You need to keep the new first-time homebuyer tax credit in mind though.
This is a credit you can get from the government that will provide you with eight-thousand dollars to use toward your home. It can be used for most types of residence, including detached homes, mobile homes, condominiums, and others.
It is limited to properties that cost under $800,000. This should not exclude many people looking to buy their first house as it is a generous maximum.
If you are building your home instead of buying, have no fear, for the tax credit applies to you as well. You will be able to claim it on the first day you move in.
Don’t forget that the credit is different from any kind of tax deduction. The credit gives you an exact reduction on the amount you owe as a taxpayer. The deduction is when you take remove the figure from the amount you are being taxed.
If you are looking to buy your first home, take the time to fill out the appropriate paper work that will credit $8,000 towards this milestone purchase. This tax credit is an outstanding opportunity for you that will help save you some money.
There are so many issues that come along with purchasing a new home. Saving money any way you can will certainly ease these stresses and let you relax a bit during the process.
This author has been writing on purchasing homes for the past three years. Moreover, the author enjoys writing on NYC neighborhood subjects, including apartments in SoHo in addition to Midtown homes.
- IRS paid $513M in undeserved homebuyer tax credits (seattlepi.com)
- IRS paid millions in undeserved home credits (msnbc.msn.com)
- Tax Credits, Deductions, and Deferrals (education.com)