Buy a Home in Mercer County NJ and Lower your Taxes

New rules that took effect on Nov. 7, 2009, extend and liberalize tax credits for homebuyers. Now there are two kinds of credits for homes costing under $800,000. One is a credit of up to $8,000 for first-time buyers of a principal residence who didn't own another principal residence during the three-year period ending on the date they purchase the new place. The other is up to $6,500 for buyers who owned a principal residence for any five consecutive years during the eight-year period that ends on the purchase date. Both credits allow buyers with higher incomes to qualify and require them to sign a binding contract by April 30, 2010, and complete the deal by June 30, 2010.

Tip to Remember:  there is a 1st time buyer Tax Credit + a Repeat Buyer Tax Credit

If you own more than one dwelling, principal residence or main home means the place you live most of the year, as opposed to a vacation retreat or property for which you charge rent. A principal residence is not just a conventional single-family home. It also can be a condominium, a co-op apartment, a housetrailer, a mobile home or anything else that provides all the amenities of a dwelling, such as a houseboat or yacht that has facilities for cooking, sleeping and sanitation.

Tip to Remember:  You can own more than one property and qualify for the tax credit

How do you use the credit?  A tax credit will lower your taxes dollar for dollar.  A deduction reduces the amount of income upon which you figure taxes owed. 

Example:  a credit of $1,000 reduces taxes by that amount, regardless of tax bracked.  A deduction of $1,000 saves $350 in taxes for someone in the 35% tax bracket, but only $100 for someone in the 10% bracket.

Tip to Remember:  These are tax credits offered you by uncle Sam, not deductions.

What if the home buyertax credit is more than the total taxes you owe?  A Refundable Tax Credit (like the recently revised one for first-time homebuyers) can be refunded to the extent that they exceed your income tax. So even buyers who have no income-tax liability could receive as much as $8,000 from the IRS.

Bottom Line:  Don't Lose this Opportunity to Buy Now, at Great Rates, at Great Prices, and get paid back on your taxes!  Look at homes for sale in Mercer County on my web site, and call me today to look at homes. 

Tip to Remember:  You must be in contract to purchase by April 30.

Joe Giancarli
609-658-2612jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.net/