The steady decline in housing prices over the past few years has been due primarily to the decrease in home sales. The housing market is heavily affected by the economy. The government recognizes this and has put into action laws that are aimed at increasing property sales.
The Tax Credit for Home Buyers law was revised in 2010 with new rules to acquire tax credits for home buyers. Originally approved in 2008, the law has been revised two times to better fit the state of the economy.
In 2010, the Tax Credit for Home Buyers law was revised again to lessen the strict guidelines for qualifying for the tax credit. However, one must get to know the Tax Credit for Home Buyers law thoroughly in order to avoid any future issues in buying your next home. Below you will find a summary of what the Tax Credit for Home Buyers law entails.
The law applies to first-time buyers who have not owned any principal residence in the last three years and is subject to income limitations, depending on the status of the individual. A single buyer should have an adjusted gross income between the range of $125,000 and $145,000 to be eligible for the full credit. Married couples, however, need to earn between $225,000 and $245,000 as they are expected to earn more than that of a single individual.
Additional restrictions include an age limit and overall home price. An individual must be 18 years of age at the date of the closing of a property in order to qualify for the tax credit. In addition, homes that are prices over $800,000 are not eligible for the tax credit.
It is important to note that the date of sale is also important regarding tax credit qualification. A home purchase that qualifies for the tax credit must have closed after November 6, 2009. A dated proof of purchase is required in order to proceed in the process.
The revisions to the Tax Credit for Home Buyers law can be confusing. However, there is a more detailed explanation of the law and its guidelines and revisions is available on the IRS website.
The government website also has FAQs and instructions on the on how to apply for the home purchase tax credits from the same website. The site has the rundown on all requirements needed when applying for the credit.
This individual has been publishing commentary with respect to tax-related issues for the last five years. Furthermore, the individual enjoys blogging with respect to New York real estate topics, like Hudson Heights apartments in addition to apartments for rent in Alphabet City.
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