Buy a Home and Get a Tax Credit for $8000

If living in beautiful San Antonio was not reason enough to buy a home, the current drop in housing prices can be a great incentive. With the current housing market boasting the lowest prices in decades, coupled with the amazing selection that home buyers have to choose from, there are many great reasons to buy a home. If that’s not enough incentive, now the federal government is giving first time home buyers an even better reason to buy with their new tax credit.

This tax credit is designed to give first-time home buyers and individuals who have not had any interest in a home in the past three years a tax credit of up to $8000. Unlike other deductions you might have taken in the past, this is a true tax credit.

There are some rules and restrictions, as with any new tax incentive, buyers will need to be aware of before they claim the credit. It is always recommended to speak to a tax professional before claiming any extra credits on your tax return to ensure that you qualify.

While it is important to understand that this credit is for first time home buyers it also covers buyers that have not owned a primary residence in the past three years. This means that even if you own a vacation property or an investment property you will still qualify for this credit if you have not purchased a primary residence in the past three years. There is a very important restriction when it comes to the purchase of a home for the tax credit purposes. The home can not be purchased by a “related party” which means that in order to get the tax credit you cannot purchase the home from a parent or sibling.

This new home buyer tax credit applies to all individuals who close and fund a home by December 1, 2009. While the San Antonio housing market is full of great deals and incentives, the federal government is giving buyers one more reason to purchase a new home in this economy. With the great deals on purchase prices and the tax credit that is now available for new home buyers, it is almost impossible to understand why more individuals are not looking for their first home. Now is the perfect time to unlock your dreams of owning a new home!