With the US government trying to boost real estate sales through tax credit foreclosures, there has never been a better opportunity for buying a property. So if you are a first time home buyer taking advantage of the ongoing housing tax credit s the smartest move you can ever make.
The American Recovery and Reinvestment Act has provided a great opportunity to prospective home buyers to fulfill their dreams of owning a home at highly reduced and affordable rates with the help of a tax credit which can help supplement a considerable amount of the property price.
Benefits of applying for Tax credit foreclosures
• With the opportunity of credit benefits of up to $ 8000 offered by the US government for buying foreclosed properties first time buyers need have the best option of affordable housing at highly reduced prices.
• By taking advantage and qualifying for tax credit foreclosures you can even manage to make a down payment on the foreclosed property with the credit amount.
• When you combine the additional tax savings along with the savings incurred on buying a foreclosed property which are priced as low as half of the market value a home buyer can actually get a deal at an unimaginable bargain price.
Important eligibility criterions
But before you apply for the purchase of a foreclosed property there are some important guidelines that you must pay attention to in order to qualify for tax credit foreclosures:
• Credit amount – The credit is calculated as 10 percent of the home’s purchase price up to a maximum of ,000.
• Eligibility – Only first time home buyers home buyers are eligible for the credit. If you are single with an income of ,000 or married with a combined income of 0,000 or less, you qualify for the full ,000 credit.
• Income limit –Single taxpayers having an income limit of ,000 and married taxpayers filing a joint return of 0,000 or lower are eligible for this credit.
• Modified Adjusted Gross Income (MAGI) – In the case of homebuyers with a modified adjusted gross income (MAGI) of more than ,000, and married homebuyers of more than 0,000 the tax credit is still applicable but is reduced.
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