The Federal home buying tax credits have expired but review the two Kentucky programs still available. Contact us for more information.
The New Home Tax Credit is a nonrefundable credit, up to $5000, against individual income tax allowable to a qualified buyer, provided a cap of $25,000,000 for all approved New Home Tax Credits has not been met.
â€¢ The up to $5,000 state income tax credit can be applied against state tax liability for the purchase of a new, not previously occupied home in the state of Kentucky.
â€¢ To qualify you must fax the New Home Tax Credit form to the Department of Revenue at (502) 564-3706 within seven (7) days of the closing.
â€¢ The tax credit is non-refundable, meaning you will not receive a refund of any unused portion and may not be carried forward or backward to another year.
â€¢ The home purchased must be a single family dwelling that will be used as the primary residence for at least two years.
â€¢ New homes must be purchased, with a complete sale by July 26, 2010 to qualify.
To Apply For the Credit:
- Submit a Kentucky Form 40A103 Application for New Home Tax Credit application via fax within seven (7) calendar days of the escrow closing between the buyer and the seller.
- Kentucky Form 40A103 may be accessed via link to application.
- FAX to the Department of Revenue at (502) 564-3706
A Mortgage Credit Certificates (MCC) reduces the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan. MCCs are NOT mortgages. They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment.
â€¢ Through the Kentucky Housing Corporation, the federal government allows first time homeowner an income tax deduction for part of the interest paid each year on a mortgage loan. The Mortgage Credit Certificate gives you a tax credit of up to $2,000 each year (25% of total interest), which reduces the amount of federal income tax you pay and puts more money in your pocket during the year.
â€¢ The credit can be taken for the life of the loan. If you sell your home before nine years you could be subject to a Federal Recapture Tax