Attention Indianapolis residents, want free money? In today’s Indiana economy, every little bit helps…except that right now our government is offering more than a little bit of help. Did you know that if you buy a home before December 1, 2009, you will receive an $8000 First-Time Homebuyer Tax Credit? Rather than this being a write off, you can literally take that money off your taxes or add it to the refund you are scheduled to receive.
What’s the catch? Well, for one thing, you do need to be a first-time homebuyer. The term “first-time” is a little misleading when used in this context because the technical definition is the one used by the IRS. They define first-time as, for the three-years prior to this new home purchase, you or your spouse cannot have owned a home.
The $8000 First-Time Homebuyer Tax Credit doesn’t just apply to single family residences either. You can use it toward the purchase of a condo, townhome or co-op as well.
Of special note, there isn’t an across-the-board $8000 credit. The actual credit is equivalent to ten percent of what you pay for the home, with the maximum amount being $8000. So, if you purchase a home $80,000 or over, you should receive the full amount.
A few other facts about the $8000 First-Time Homebuyer Tax Credit include that it will not need to be repaid and that those applying as singles can qualify with incomes under $75,000, and $150,000 for married couples.
So, how do you get started? Locate an Indianapolis REALTOR® and ask them to find several Indianapolis homes for sale in your price range. You can ask a friend for a referral or contact MIBOR to find one. There are many great buys in the Indianapolis real estate market today. Get started right away though to make sure you don’t miss the December 1st $8000 First-Time Homebuyer Tax Credit deadline!