Can you afford to miss this opportunity? Do you or someone you know qualify as a first time home buyer?
1. If you have not owned a principal residence in the last three years then you would be considered eligible for this $8,000 tax credit. Principal residence is defined as the home where your spend 50 percent or more of your time. It does include condos, townhomes, manufactured, modular homes and even houseboats.
2. The home must be located in the United States.
3. For new construction, the “purchase date” is the date you occupy the home. You must have occupancy permit issued by Nov. 30.
4. Even if you own a rental property and have not lived in it for at least three years you could qualify too.
You could qualify for up to $8,000 depending on the purchase price of the home and your income. For example, you file your “normal” tax return and find that you owe $2,000 in taxes. With this credit, your tax liability could be lowered by $8,000 — which means, you get a $6,000 tax refund check from the IRS instead of owing. Does it get any better than this?
Who cannot take the credit?
If your adjusted gross income exceeds $170,000 when filing jointly or exceeds $95,000 as a single filer you have exceeded the income limits. You can not buy from a close relative, i.e. spouse, parent, grandparent, child or grandchild.
If you sell your home within three years of purchase, the entire amount of the credit is recaptured — the government would consider this amount as money owed to them.
There is a short window of opportunity to take advantage of this free money. Your home purchase must be finalized and closed by Nov. 30.
We recommend you have your selected home under contract no later than Oct. 1. Don’t wait until the last minute and miss out on the home of your dreams. The time to act is now.
Contact Realtor/Interior Designer Tracy Corriveau and Realtor Kim Poole at Windermere in Kingston, (360) 297-2661.