New Home Tax Deduction for 2011, 2012
63New Home Tax Deduction
You’ve probably heard about right now being the right time to buy a home at least a dozen times over the last couple of months right? Well me too but I’ve also had the benefit of having many friends actually do this, very successfully.
If you’re a first time home buyer and you bought your new home after January 1st of 2009, then you’ll be eligible to claim a $8,000 tax credit. This credit is only available for single buyers with incomes of up to $125,000. It’s also available for couples with a combined income of up to $250,000. The original stipulations were actually a bit lower than these numbers, but were raised last November.
Another good thing to know is that homes costing more than $800,000 are not eligible for the credit. Also, if you sell your new home or cease to use it as your principle residence in the next three years after it’s purchased, then you will be required to repay the credit.
You will need the IRS tax form 5405 and can claim this deduction on either your 2010 or 2011 return. However, keep in mind that there are many online services, such as TurboTax Online, that you can utilize to file all of this information quickly and properly without the hassle of downloading forms and depending on the mail.
Energy Tax Credits and Deductions for Your Home
If you installed new windows or doors you may be able to qualify for an energy tax credit. There are several other home improvement projects which also qualify for the energy tax credits 2011. Your energy saving improvements will lower your heating bills and will also lower your tax bill as well.
