Did you purchase a home last year and are interested in the federal housing tax credit? You may have not known when you purchased your home last year, but, you may be eligible to receive a tax credit of either $6,500 or $8,000 depending on when you purchased your last home. Both of these credits are fully refundable and do not have to be paid back as long as you maintain residency in your home.
There are basically two types of credits that you can claim with the federal housing tax credit. The first credit is the move-up or repeat buyer’s credit. In order to qualify for this credit, you must have owned your current home for at least five years. This credit is worth 10% of the purchase price of your home up to $6,500. This credit only applies to homes that were purchased after November 6th, 2009. In addition, your income can not exceed $125,000 if you are single or $225,000 if married.
The second part to the federal housing tax credit is the first time home buyers credit. With this credit, anyone who has not owned a home in the past three years is considered a first time home buyer. With this credit, you will receive 10% of the purchase price of your home up to $8,000 and can only be used if the purchase price of your home is less than $800,000.
Author: Carla Kessler