What Are the Benefits and Criteria of Getting Tax Credit For Buying Foreclosures?

With the US government trying to boost real estateproperty which are priced as low as half of the
sales through tax credit foreclosures, there has nevermarket value a home buyer can actually get a deal at
been a better opportunity for buying a property. So ifan unimaginable bargain price.
you are a first time home buyer taking advantage ofImportant eligibility criteria
the ongoing housing tax credit s the smartest moveBut before you apply for the purchase of a foreclosed
you can ever make.property there are some important guidelines that you
The American Recovery and Reinvestment Act hasmust pay attention to in order to qualify for tax credit
provided a great opportunity to prospective homeforeclosures:
buyers to fulfill their dreams of owning a home at highly- Credit amount - The credit is calculated as 10 percent
reduced and affordable rates with the help of a taxof the home's purchase price up to a maximum of
credit which can help supplement a considerable$8,000.
amount of the property price.- Eligibility - Only first time home buyers home buyers
Benefits of applying for Tax credit foreclosuresare eligible for the credit. If you are single with an
- With the opportunity of credit benefits of up to $income of $75,000 or married with a combined income
8000 offered by the US government for buyingof $150,000 or less, you qualify for the full $8,000 credit.
foreclosed properties first time buyers need have the- Income limit -Single taxpayers having an income limit
best option of affordable housing at highly reducedof $75,000 and married taxpayers filing a joint return of
prices.$150,000 or lower are eligible for this credit.
- By taking advantage and qualifying for tax credit- Modified Adjusted Gross Income (MAGI) - In the
foreclosures you can even manage to make a downcase of home buyers with a modified adjusted gross
payment on the foreclosed property with the creditincome (MAGI) of more than $75,000, and married
amount.home buyers of more than $150,000 the tax credit is
- When you combine the additional tax savings alongstill applicable but is reduced.
with the savings incurred on buying a foreclosed