Have you been saving money for years in the hopes of finally being able to buy your first new home? Have your dreams of becoming one of the happy first time home buyers been dashed because of the recent economic crisis? Well, there is no need to give up hope just yet. President Barack Obama has made efforts in order to make your dream of being a first time homeowner possible through the home stimulus package tax credit.
To be eligible for the many benefits of the tax credit, you must not have owned a house in the 3 years previous to now and must make the purchase of your new home prior to November 30 2009. There is also a further stipulation to ensure that only those people who really need it can take advantage of the package. This means that you need to be earning less than 170 thousand dollars if you are married, or 95 thousand dollars if you are single, in order to benefit from the incentives being provided.
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. The amount of money that you will receive is worked out like this – $8000 minus how much you pay for income tax in a year. As an example, if you have to pay $1000 worth of income tax, then you this packages entitles you to receive $7000 from the government.
Also, keep in mind that you can only get 10% of the total amount you spend purchasing your house as a tax incentive, with a maximum of 8,000 dollars. Therefore, to qualify for the full tax credit of $8000, you will need to spend at least $80,000 on a home. Otherwise, you will receive smaller amounts based on how much you paid for your home.
There are other ways in which you can save money on your new home. If you install energy saving appliances such as lights, air conditioning, heating systems, hot water heaters and so on-you can get incentives for the cost of these appliances as well. 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.
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