3 Tax Credits Homebuyers Should Know
With the housing economy in Florida on the upswing since 2008, now’s a good time to take advantage of the tax incentives and credits available to homebuyers.
Finding the tax credits that are right for you can be a bit of a struggle, so below is a list of the three most commonly used U.S. tax credits that homebuyers like you should get better acquainted with.
Home Energy Incentives
In certain states, like Florida, Texas and New Mexico, where the sun shines a little more often than not, home energy tax credits are fast becoming a popular option. The Residential Energy Efficiency Property Credit, gives homeowners who use energy saving tools, like solar panels, wind turbines, geothermal heaters, and more up to a 30% cost reduction for things like cost of labor and installation.
In order to be eligible for the credit, you much provide receipts for all labor costs and installation services for the year the energy efficient items were put into place.
Mortgage Credit Certification
The Florida Housing Mortgage Credit Certificate program gives first-time homebuyers the opportunity to get a noticeable tax break on their mortgage interest. Originally, it was designed by the IRS to give everyone, regardless of income, a fair shake when it came to owning a home. The program works to lower the total amount you owe on your mortgage, as opposed to reducing your taxable income, like a deduction would.
Depending on the final purchase price of your home, you can earn up to 50% of yearly interest back as a tax credit.
Private Mortgage Insurance Deductions
If you purchase any private mortgage, its premiums are usually added to your existing mortgage payments if the loan’s value is more than 80% of your home’s value. Renewable through Congress, these deductions give those who needed to take out far more substantial loans a financial reprieve that comes with having increased monthly mortgage payments.
With Stanley Martin Homes at the helm, we can ensure you and your family gets settled into the home of your dreams with an easy process that’s fast, efficient, and stress-free. If you’re in the market for a new home in Longwood, Orlando, Kissimmee, Davenport, Fruitland Park, Grand Island, Wesley Chapel or Tampa, Florida call us at (407) 590-3501, or email our Online Concierge, Todd Simon, at email@example.com.