Right now is the time to purchase one of the Virginia Beach VA homes for sale! Interest rates are low and many properties are available; but time is running out to take advantage of the real estate Tax Credit UNLESS you are in the military!! If you are military and have deployed for a minimum of 90 days in the last 365, you may still qualify for this tax credit.
Existing Homeowner Tax Credit If you have lived in one home for five consecutive years out of the past eight, you may be eligible for a tax credit of up to $6500! What's more, you aren’t required to sell your existing home, but you do have to establish the new home as your primary residence. There is no rule stating that the purchased home must be higher in value than the original house. This is great news if you’re downsizing; you may be eligible for the tax credit, too! Not a First-time Home Buyer, But Haven’t Owned a Home Lately? If you owned a home at some point in time, but not within the past three years, you’re not left out of this tax credit! You may still be eligible for the $8000 tax credit. First-Time Home Buyers If you’re considering buying your very first-ever home, you may be eligible for the $8000 tax credit. A qualified home is one which will be your principal residence, with a purchase price of less than $800,000. Therefore, vacation homes and rental properties will not qualify for the tax credit. And, there are a few rules about income that affect the amount of the tax credit. But, if you've been considering a Virginia Beach home for sale, you owe it to yourself to determine if you can qualify!
Just how does this tax credit work? This is a refundable credit. That means that if the amount of income taxes you owe on your 1040 Federal Income Tax form is less than the credit amount you qualified for, you will receive a check from the government for the difference. All qualified homebuyers can take the tax credit on either their 2009 or their 2010 income tax return. If the home is purchased in 2010, but you want to use the tax credit against your 2009 taxes due, you simply need to file an amended 2009 income tax form. There's one stipulation on the tax credit that you should keep in mind. If you sell the home, or it is no longer your principal residence within three years of the purchase, the tax credit must be repaid. You can now see that there are a number of ways to take advantage of the Tax Credit. This could be just the thing you need to help you decide to make that next move. Call us at 757-425-2500, or use the form below to send an email for more information. We’ll be glad to review your specific situation to see how the tax credit can help you!
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