Government Money for a Houseboat
Government Money for Your House boat?
In my article two weeks ago I spoke about the tax credit that new home buyers can receive. I heard from many people who had questions so here is a list of some of those questions, and the answers I received from various government agencies. Please, check with your accountant or tax adviser before doing anything! I am not an accountant.
Before we start with that though, I want to let you know that almost all federal publications regarding housing programs are available at http://pueblo.gsa.gov/ . This is a great resource for those of you who are just starting your home buying search.
The first question most people ask about the tax credit is, “Am I eligible for the $7500 credit or not?” that answer is not too hard to understand…if you are a U.S. citizen, and for the purposes of this article I am going to assume that you are a citizen, and you are a first time home buyer you may be eligible for this credit.
You must have bought the house after April 9th 2008, and before July 1, 2009. You may not have owned a home any time in the last 3 years, and you must meet the income eligibility guidelines.
“What are the income limits?” For single buyers you must earn no more than $75,000 and for married couples that is doubled to $150,000.
“Do all types of homes qualify?” If you buy a newly constructed home, a resale home or have a home constructed on land you own, you may qualify. Also, town houses, condo’s, mobile homes and even house boats may qualify. The key is that the home you are buying is going to be your principle residence. So, before you go out and buy that houseboat, remember the government expects you to live on it.
“Do I have to pay this back?” YES. 2 years after the credit is claimed the taxpayer would be responsible for paying the credit back at 0 percent interest over 15 years. For example, home buyer A takes the credit of $7500 in 2009. In 2011 that homebuyer would start paying back the government at $500 per year, for 15 years. If homebuyer A sells the home, the full amount left of the credit would be due. If there is not enough profit, than the remaining amount of the credit will be forgiven.
“I am not a citizen, can I still qualify for this tax credit?” well of course you can. The government doesn’t want to leave out non taxpayers when they give out tax payer money. You may not be a “Non-Resident Alien” however. The IRS has a form, publication 519, that form will give you a good definition of a Non-Resident Alien.
One of the neatest things about this deal is that if you do not owe money come tax time, you can actually get the government to send you a check!
I hope I answered all your questions. If there are any more questions that you think of, please contact me at PatrickDugan@mris.com