Thursday, January 7, 2010

Tax Credit - Are you Eligible?

Tax Credit Eligibility is an important issue that one should be clear about before they start their search for a property. Many clients are in a rush to buy hoping that they may use 8k for closing costs. But are you really going to get $8,000 if you buy before April 30, 2010?

First of all, are you “First-time home buyers”? If you (or your spouse) have not owned a residence during the three years prior to the purchase - yes.

The second category eligible for a tax credit is current homeowners purchasing a home as long as the home being sold was their principal residence (not just a property they owned!) for five consecutive years within the last eight. And the home you are buying does not have to be more expensive than the house you have been living in.

One important aspect is that the existing home does not need to be sold, but you must occupy the new home as a principal residence. Remember, if you do occupy it for less than 3 years, the credit will be taken back.

And lastly, are you really going to get $8k? Well, yes, if you are first-time buyers in our area because 8k is less than 10% of the sales price of any real estate you will want to buy. However, if you are already a homeowner, it is going to be just $6,500. But again, to be eligible for any tax credit if you are single your income should not be more than $125k and for married couples - no more than $225,000.

Here is a link to see what townhouses and condos are available for sale or rent in Treebrooke and surrounding subdivisions in Oakton today:

Call me if you have any questions.

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