I mentioned this in my last article and I believe it offers a great incentive for first time buyers. First time
buyers can receive a credit of up to $7,500, or 10 percent of the home's purchase price. This is intended to
get those waiting to see what happens with the market, to jump in and get their feet wet.
The next tax provision is a benefit which would allow homeowners to receive a 500 to 1000 dollar annual
deduction for the property taxes they are not currently writing off.
There are a couple of things to keep in mind when considering the tax provisions. The new tax credit for
married couples, who file together, can receive the max amount, while single homebuyers receive about
half of that.
Another factor, the tax credit is not without a cost. You are required to pay it back over the next
fifteen years. However, it is an interest free loan.
Lastly, first time homebuyers is not what you may think. Even if you have owned homes in the past, you can still
qualify for the first time buyer credit. However, you cannot have purchased a home three years before your
most recent purchase.
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