Owning a home is the dream of every one. But, if you think that you cannot fulfill your dream because of the economic recession, the federal government has come up with an $8000 tax credit plan that will rekindle your interest in real estate. |
The plan will infuse energy into the real estate market. But for people like 40-year-old John Bateman and his spouse of six years, owners of a summer home and residents of Asheville, real estate buying through this plan requires some forethought and the knowledge about their eligibility.
Credit Only For First-Time Home Buyers:
Only first-time home buyers are qualified to avail this credit. A ‘first-time home buyer, in this context, is someone who hasn't owned a principal residence for three years prior to buying the house. But, if somebody owns a vacation home or a rental property, but not a principal residence, he/she can be considered for the credit. Which means, for John from Asheville, real estate buying, especially a residential property, need no longer be a distant dream.
Spouse Should Not Own Principal Residence:
If you are married, the authorities also check whether your spouse had any real estate transactions that involved the purchase of any principal residence in the previous three years. If you haven't owned a house in the past three years, but your spouse have had, either of you will not be considered as a first-time home buyer.
In case of joint property, as in the case of parents and children, and unmarried partners, any one of them, termed as the first-time buyer, can avail of the tax credit facility.
Date Of Purchase:
The home in consideration should have been purchased on January 1 or between January 1 and December 1. The date on which the closing occurs and the title to the real estate is handed over to the home owner is considered as the purchase date. The credit is equivalent to 10 percent of the purchase price of the home or a maximum of $8000. Those who have bought their homes in 2008 cannot benefit from the tax credit plan.
You should also be aware of the income limit to which the tax credit has been subjected to. If you are single, your adjusted gross income should be $75000. The limit is $1,50,000 for married couples. If your earning is more than this, you will be given reduced credits only.
Keep The Home For Three Years:
Another condition stipulated by the authorities is that the first-time home buyers have to keep the home, their most important real estate possession bought under the $8000 tax credit plan, for a minimum of three years.
If you decide to sell your home before the stipulated three-year period ends, the credit has to be given back to the government. Exceptional situations resulting from death or divorce would be considered in this case.
When the opportunity to possess the home of your dream knocks on your door, you should first judge yourself whether you are eligible to be considered a first-time buyer. Look for specific pointers which you may overlook otherwise due to doubt, like in the case of John from Asheville. Real estate professionals can help you find that beautiful home in your favorite locality once you are in the clear.
In Asheville, real estate professionals can guide a first time home buyer to the best buys in the property market and possible loan facilities to make the dream of owning a beautiful home a reality. To know more, visit http://www.preferredrealestatecenter.com
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