Not necessarily an $8,000 tax credit…but probably close!
November 13, 2009
I’ve recently been asked quite a few questions about the $8,000 first-time home-buyer tax credit. What needs to be understood is that you’re not necessarily getting the full $8,000. Your credit amount is based on the value of the home you purchase. It is the lesser of either 10% of the home’s cost or $8,000. So a $150,000 home will get the full $8,000 tax credit whereas a $50,000 home will get $50,000 x 10% or $5,000. The max amount is $8,000 so basically any house priced less than $80,000 will result in a tax credit less than $8,000, while any home priced over $80,000 will still only get the max amount of $8,000.
This blog post is only addressing this one simple question and is not a blanket statement about whether or not you might qualify for the tax credit. Please contact me if you have additional questions or simply ask them right here on www.CallChrisToday.com. I hope this explanation helped some of you.