Tax Incentives

Question: Are mobile homes, new or used, eligible for first-time home buyer tax incentives with President Obama's current programs? – Fran

 

Answer from Lee Davenport, Senior Money Producer, The Beehive

 

Yes! If you can buy a new or used manufactured home (mobile home) this year, you can get the first-time home buyer tax credit. 

 

“First-time buyers” can claim a credit of up to $8,000, or 10% of the home's value, on your 2009 taxes if you have not owned a home in three years and meet the other requirements. It’s a refundable credit too, so you’ll get that money back to you immediately, if you bought a home, apartment, condominium or a mobile home.

 

If you take the credit this year, you’ll have 15 years to pay it back. It’s really an interest-free loan – at $500 each year. 

 

To qualify for this program, you need to purchase the “principal residence,” where you’ll live, between Jan. 1, 2009 and July 1, 2009. You will need to live in the home for at least three years or pay back the credit. To get the full credit, single buyers must make less than $75,000; couples must make less than $150,000.

 

Applying for the credit will be easy. Just claim the credit on your taxes. But remember, although it’s designed to give you cash now, you’ll need to repay it in 15 years.

 

Learn more about the first-time home buyer tax credit.

Learn How to Take Advantage of Tax Incentives and Credits

Find out what’s available. In addition to the first-time homebuyer tax credit, there are other credits, rebates, and deductions that you may be able to take advantage of. Make sure you get all of the possible credits you qualify for to help reduce your taxes and maximize your refund. Some of these credits include: Energy tax incentives give homeowners up to $1,500 to cover the costs of installing energy-efficient windows, doors, insulation, roofs, etc. Improvements done to an existing home between January 1, 2009 and December 31, 2010 are eligible. Utility and state rebates include state, local, utility, and federal incentives that promote renewable energy and energy efficiency. Check availability in your area and find out if you qualify for any incentives.  Other credits and deductions  Claim your credits. Some credits can be applied for right on your taxes. Others may require you to attach a separate IRS form. The IRS database can help you can find the correct form by searching for your credit in either product number (IRS form number) or title. Make a good investment. Whether your refund goes into a savings account or you spend it on new windows for your home, investing your money can save you in the long run. Before you decide what to do, consider your options: Save - If you already have a saving account, consider putting some away for expenses, emergencies, or retirement. If you don’t have a bank account, consider opening one, like a high-interest savings account, to get the most out of your money.  Spend - Why not use some of that money to pay off your debt or get caught up on bills? It might also be a good time to make some needed repairs to your home or car, for example. If you have the funds, it could also be a good time to start your own business or go back to school.