Are you one of the many people who have been saving for years on end to buy your first home? Has the recent economic crisis dashed your hopes and dreams of making that purchase in the foreseeable future? Don’t give up hope just yet. The home stimulus package tex credit, an initiative of President Barack Obama, could be just what you are looking for in these difficult financial times.
If you have not owned a house in the last three years and you are buying a house from January 1 to November 30, 2009 then you are eligible to receive the many benefits of the tax credit. There is also a further stipulation to ensure that only those people who really need it can take advantage of the package. In order to benefit from the incentives being provided, you must be earning less than ,000 a year if you are single, or less than 0,000 a year if you are married.
You should note that this tax incentive is different from previous tax credits in that you do not have to pay back the money you save now in a couple of years time. This is a dole out from the government through tax incentives. This donation from the government works this way: The government will pay you eight thousand dollars minus how much you will pay for income tax. As an example, if you have to pay 00 worth of income tax, then you this packages entitles you to receive 00 from the government.
Something else to bear in mind is that 00 is the maximum available and you can only get 10% of the total cost of your new home. Therefore, to qualify for the full tax credit of 00, you will need to spend at least ,000 on a home. Should your home cost less then ,000, you will still receive money from the government, but it will be a lesser amount.
As an added bonus, by installing energy saving appliances in your new home, you can also get incentives for the cost of those applicances. So, if buying a new home and doing your bit to help the environment appeals to you, then now is the time you can do so with the help of the government. Remember though, you must act before November 30 2009.
Feel free to check out this great resource that provides reliable information on the first time home buyers stimulus.
Gavin King is the Designated Broker of Realty In Idaho.
