Columbia SC Real Estate Purchases Made Easier for First-time Home Buyers

First–time home buyers in Columbia, SC and around the country have a terrific opportunity to take advantage of the new tax credit that Congress has passed as part of its economic stimulus plan to jumpstart the economy and the US housing markets. Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers. To be eligible for the credit, first-time home buyers must purchase a home between January 1, 2009 and December 1, 2009. A “first-time home buyer” is defined as a purchaser who has not owned a residence during the three years prior to the purchase (spouse may not have owned a residence either). The only properties eligible for the tax credit are primary residences. Single-family homes, townhouses, and condos are eligible for the credit. The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors: 1) price of the home - the credit is equal to 10% of the purchase price of the home, up to $8,000. 2) buyer's income - single buyers with incomes up to $75,000 and married couples with incomes up to $150,000 - may receive the maximum tax credit. Buyers can receive a smaller credit if their income exceeds these limits. The smaller credit is available for single buyers who earn between $75,000 and $95,000 and home buyers filing jointly who earn between $150,000 and $170,000. This credit never has to be repaid if the buyer occupies the home for three years or more but the credit will have to be paid back if the house is sold during the three year period. We are seeing a very positive impact on the Columbia, SC real estate market as the tax credit is encouraging more and more first-time home buyers to take the plunge.