Using The First Time Home Buyer Tax Credit During 2009

Buying a home for the first time is very costly, and if you’re the average home buyer, you don’t have a lot of money to spare. The first time home buyer tax credit was created in the United States to help give aid to families who would otherwise not be able to afford a house to live in.

The first time home buyer tax credit currently in place is only going to last until the end of December, 2009. If you are planning on buying a home, acting fast is going to be a requirement. Sometimes the paperwork necessary in buying a home can be delayed, and if you aren’t before deadline enough, you could lose your chances at obtaining the tax credit. It’s unclear if the tax credit will be available in 2010.

The amount of the tax credit is going to be 10% of the purchasing price of the home, up to an amount of $8,000. Since the average home is easily slated at around $100,000, most of the applicants will likely be hitting the $8,000 maximum. When financing for the home, the $8,000 saved could easily take off a year or more in payments.

The first time home buyer tax credit of 2009 is only for those who have not purchased a home before. All others will sadly be disqualified from receiving it. The income of you and your spouse, if applicable, will also be grounds for allowing or disallowing the credit. Accountants will know how to classify your qualifications to see if you can apply or not.

Take note that the first time home buyer tax credit of 2009 won’t have to be repaid, unlike the tax credit enacted in 2008. The 2008 tax credit was more of an interest free loan, whereas this tax credit never has to be repaid to the government. Essentially, it’s free money given in hopes the purchase will contribute to the economy.

Most types of homes are eligible for the tax credit. Even mobile homes or boat homes are able to qualify for the tax credit. If you have an odd living arrangement, you should consult an accountant, who can tell you whether or not the living arrangement counts towards the credit. The only stipulation is that you can’t buy the home from a relative.

Closing Comments

Getting a house for you and your future family is very exciting. Remember that the process can be a long one, so you should get started as soon as possible. Talk to a real estate agent and start looking at some homes in your area and find an accountant in your area.

Learn more on West End Loft Tax Credits and Syndicate Historic Tax Credits.