First Time Home Buyers $8,000 Credit
Up to $8,000 is available for first time home buyers. You can get a credit of 10% of the purchase price of a home. Now, if you’re purchasing a duplex to live in one half, you can take advantage of the credit against 1/2 of the purchase price. For instance, if you purchased a duplex in Ormond Beach for $160,000 and moved into one unit, you could take the full $8,000 credit against $80,000 ($160,000 / 2 = $80,000).
December 1st will signal the end of a great deal for first time home buyers. Even better, you don’t need to be a first time home buyer to take advantage of the credit. If you haven’t owned a home in three years or more, you’re eligible. This credit is significant because if can be used to reduce your taxes, but if your taxes are less than $8,000, you will get a credit for the difference. Yes, you get a payout. This hasn’t always been the case with other credits.
There are some conditions in eligibility for the tax credit:
- If you’re single, the credit starts reducing at Modified Adjusted Gross Income (MAGI) over $75,000
- If you’re married, the credit starts reducing at a MAGI over $150,000.
- MAGI is Adjusted Gross Income with certain deductions, such as student loan deductions, IRA contributions, and foreign deductions added back in.
With prices having fallen over the past few years, and interest rates low, this tax credit makes buying now even more attractive. If you are considering buying an Ormond Beach or Daytona Beach home and are eligible for this credit, act before the credit expires on December 1st. You must buy before or on that date.
For more information, call Lynn Byrne at 386-566-7503.