Chat about Macomb County MI real estate & Homes for sale search site

Last week I heard from a gentleman who is thinking about not renewing his apartment lease and taking advantage of the first time home buyers tax credit.   In his inquiry he wanted to know if he purchased a home for $40,000 if he still would recieve all of the “$8,000″.

The answer is no. He would be eligible for a tax credit equaling 10% of the purchase price of the home. ($4,000 for his example of a $40,000 purchase price.)

One of the reasons that people get so confused about this is because this tax credit is referred to as the “$8000 1st time home buyers tax credit.” I’ve been guilty of referring to it as that myself, although I do try to always pre-fix it with “up to”..

Likewise, if you purchase a $100,000 home and you meet the other guidelines for the tax credit the amount of money you are eligible to receive is $8000, not $10,000.

Keep the questions coming and thank you to those who have given me permission to post your questions here.  The answers are helpful to many who are confused by this topic.

~Kris Wales~ A partner for your real estate needs in Macomb County MI
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