What types of home-buyer tax credits are available?

In North Carolina, home-buyer tax credits are available for certain types of home purchases. First, the Mortgage Credit Certificate (MCC) Program can provide qualified home buyers with a federal income tax credit, which is based on the amount of interest paid on the mortgage loan. This tax credit can be taken each year for the life of the mortgage loan and can amount to up to $2,000 annually. Additionally, the Mortgage Interest Deduction (MID) allows home buyers to deduct the interest paid on their mortgage loans from their taxable income. The MID allows for deductions up to $750,000 in total debt, with no annual limit. Additionally, the Federal Homebuyer Tax Credit (FTHBC) is available to certain first-time homebuyers and can be used to reduce the total amount of income tax owed. It can range from up to $8,000 to $4,000 depending on the situation. Finally, the NC Home Advantage Tax Credit is a tax credit specifically for first-time homebuyers or military veterans in North Carolina. This program can provide up to 5% of the purchase price or $2,000, whichever is lower, and can be used in conjunction with other tax benefits. In summary, there are several types of home-buyer tax credits that are available in North Carolina. These include the Mortgage Credit Certificate Program, the Mortgage Interest Deduction, the Federal Homebuyer Tax Credit, and the NC Home Advantage Tax Credit. All of these tax credits can help to reduce the cost of purchasing a home in North Carolina.

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