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Tax Credit A Benefit For New Home Owners

By Faye Mergel
Published: Thursday, April 15th, 2010

KABLRM-00003372-001The Worker, Homeownership and Business Assistance Act of 2009 bring joy to possible home buyers, giving them a good reason to buy a home with an improved amount on their tax credit. This is also referred to as’ homebuyer tax credit’ and is an advantage for those who will buy a house before April.

This 2009 act is also referred as “$8,000 available”, it is the value of the highest tax loan given to individuals buying a home. The Louisiana Society of Certified Public Accountants conducted its yearly telephonic hotline option for those who had questions related to taxes, where most of the issues and queries were to understand the New Homebuyer Credit.

The regulation is claimed to have been introduced to help the country profit from the losses incurred during recession, although most of the concerns were related to who benefits from this act and the means to claim this benefit.

This act is an advantage for those who have not owned a home in the last three consecutive years, giving them a tax loan of nearly $8000 individual tax payers whose income averages about $125,000 and couples at $225,000.

Buyers are expected to have the paper work completed, the contract signed and all relevant documents in place by 2010 April, and can finalize this by the end of June 2010. Documentation is the key feature that pushes buyers to have all the paper work updated while claiming for this benefit.

This act was revised in November of 2009 , where this benefit was extended to owners who currently have a loan and have owned and paid for the property for the five years within a eight year bracket.

Those individuals who already own a house and want to avail a tax benefit for the purchase of another property must have relevant documents to prove their property tax records or records of the homeowner’s insurance report, maintained for the last five years.

Individuals must have even inch of their paper work updated and accurate, anything on the paperwork that may not be approved by the IRS can be a huge disadvantage.

With the recent economic turmoil home owners expecting a loan are expected to pay higher initial payments (down payments), a positive and good credit rating is only an advantage. One must keep track of the credit score and have it regularly updated. The pros to owning a home is higher and can be taken advantage of with the new act, giving one a sense of pride as a home owner.

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