If you are a first-time home buyer in 2010, you may be wondering if buying a home is the right thing for you. One reason that might be worth it is the 8000 Tax Credit for a first time home buyer. Below you will also find some other reasons to buy your first home.
It is normal to be a little nervous when buying your first home, but the more you know the less intimidating the process will seem to you. If you have been anxiously watching the housing market collapse in the past few years, don’t be too worried. This is the best market in years to buy a home. Prices are low and there are bargains galore. Here are some other good reasons to buy a home.
Reasons to Buy a Home
$8000 tax credit first time home buyer.The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring between January 1, 2009 and April 30, 2010. Talk to a real estate agent for more information on this tax break.
Mortgage interest can be deducted from your income taxes. If your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible from your income taxes. The largest part of your mortgage payment is usually interest.
Property tax can be deducted from your income taxes. If you pay real estate taxes for a first home and a vacation home, they are fully deductible from your income taxes. Check out IRS Publication 530 for first-time home buyers tax information.
Appreciation. Finally, one of the best reasons to buy a home is appreciation. Although the market can be volatile, at today’s low prices a house can be a great investment. Home prices will eventually rise, and those who bought when prices were low will build equity when they do.
Exclusion from capital gain taxes. You can exclude up to $250,000 as an individual or $500,000 as a married couple of profit from capital gains, as long as you have lived in the house for two of the past five years. You do not have to buy another home, and there is no age restriction. You can sell your home every two years and keep the profit without paying taxes, depending on your situation.
To speak to a real estate agent in your area about taking advantage of the 8000 First Time Home Buyer Tax Credit, please complete the form below: