Posted on: 11th Aug, 2009 06:18 am
Is there a maximum limit to the total amount of deductions you can claim on your taxes.
Hi,
Are you referring to the first time home buyer tax credit? The total amount of tax credit will not exceed $8000. Generally, you can get tax credit of 10% of the purchase price of the house. But if the purchase price is more than $80,000, say for instance $90,000, you cannot claim $9000 as tax credit. You can only claim a maximum of $8000 as tax credit.
Are you referring to the first time home buyer tax credit? The total amount of tax credit will not exceed $8000. Generally, you can get tax credit of 10% of the purchase price of the house. But if the purchase price is more than $80,000, say for instance $90,000, you cannot claim $9000 as tax credit. You can only claim a maximum of $8000 as tax credit.