• Simple Facts about the Tax Credit Program
• Understanding the Governments Tax Credit Program
The President last year approved the extension of the $8,000 Tax Credit Program. The program was designed to entice the American people into buying new homes and spur the country’s ailing economy. The new program also known as the “Worker, Homeownership and Business Assistance Act of 2009” also comes with new additions including increased income limits for married and single taxpayers.
Qualifying: Who is considered a first-time homebuyer?
A person is eligible for being a first-time home buyer if they have not previously owned a residence within three years prior to their application. For married couples, each is required to own a primary residence and failure of either of them to comply with this disqualifies them for the tax credit program.
Unmarried individuals wishing to apply for the program could qualify as long as one of the parties meets the requirements. However, the tax credits are only awarded to the qualified party. A specific example for this situation is when a parent files a joint purchase with their children. But children should be 18 or above to be considered eligible.
Tax Credit: How much is credited?
A maximum of $8,000 is credited for each application. The tax credit is based on 10 percent of the home purchase.
Income Limits
Included in the changes to the $8,000 Tax Credit program are revised income limits. Single applicants with home purchases that happen after November 26, 2009 have been increased to $125,000. Married couples who file joint returns have their income limits raised to $225,000. For individuals and married couples whose incomes are greater than their limits, the new program may also qualify for the Tax Credit Program. Tax Credits are proportionally reduced as their incomes reach more than their limits and zeroed out.
Partial Tax Credit:
Single taxpayers who wish to take advantage of partial tax credits must have incomes more than $125,000 but not above $145,000. Married couples are qualified for partial tax credits if their joint filings exceed $225,000 but not more than $245,000.
Additional sources for information on the Real Estate market in Florida: visit the website at Sarasota Real Estate
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