There has been a lot of talk about the recently revised first-time home buyer tax credit (where you can get up to $8000 when you buy this year). But there’s another tax credit program you may qualify for called TaxSmart. It is a Mortgage Credit Certificate (MCC) that could “reduce income taxes by an amount equal to 20% of the interest paid on a mortgage.”
If your home is financed under this program, the credit can be claimed every year that you live in the property. There are several eligibility qualifications associated with TaxSmart including:
- You must be a first-time homebuyer (includes those who have not owned a primary residence in 3 years) OR purchase a home in a selected target area
- Only applies to purchase of primary residences
- Income restrictions vary with number in household and whether or not the home is in a target area
- Purchase price limitations dependent on the number of units bought (1 – 4 unit properties only) and whether or not it is in the target area
- Must be a new mortgage and not a refinance or replacement for prior home loan
- Financed home must be in the City of Chicago
Dream Town has more detailed information on the TaxSmart program, including maps of “target areas,” terms of income and purchase price restrictions, a list of TaxSmart mortgage lenders, and more. Just reply to Comments below for additional info.
