The Homebuyer Tax Credit was a limited-time program enacted in 2009 to encourage first-time homebuyers to purchase homes by offering a tax credit of up to $8,000.
A homestead exemption is a legal provision that reduces the taxable value of a homeowner's primary residence, effectively decreasing the property tax burden.
Prepaid interest is the interest paid in advance before it is earned, often seen in loan agreements and mortgage practices. Generally, prepaid interest is not tax deductible, except for the customary points paid by a borrower on the initial mortgage to purchase a principal residence.
A primary residence refers to the main home a person inhabits most of the year, also known as a principal residence. It contrasts with second homes and vacation homes.
Formerly referred to as the primary residence, a principal residence is the main home where an individual lives and spends the majority of their time. Certain tax benefits and legal protections can be tied to the designation of a property as a principal residence.
A qualified residence refers to a principal residence and one other residence that a taxpayer or spouse owns. Interest paid on a qualified residence may be deductible as an itemized deduction.
In the context of taxation and real estate, a residence refers to a place where someone lives. It can be classified into various types including personal residence, principal residence, and qualified residence.
A residence that is not one's principal residence. A taxpayer may deduct interest up to certain limits on two personal residences, provided certain occupancy requirements are met.
A VA Loan is a home loan provided under the Servicemen's Readjustment Act of 1944 and later legislation, guaranteed by the U.S. Department of Veterans Affairs (VA) for eligible veterans and service members. It ensures lenders are compensated in the event of borrower default.
