• 
  Like
• 
  Follow

Search news    

---

Homebuyers could receive tax breaks for second home purchases

February 10, 2010 - South Carolina residents who are considering purchasing a rental home or some commercial real estate may be able to receive breaks on their property taxes, thanks to new legislation.

The state's senate has approved a bill that will eliminate additional taxes at the point of sale of second homes, businesses and commercial buildings, theState.com reports. In the past, many buyers have been caught off-guard by the 6 percent tax that was applied to these properties.

In addition, new owners of these types of real estate will receive a 20 percent tax exemption on their purchases.

Although some state officials worry this legislation could cost local governments millions of dollars in tax revenue, many real estate professionals and investors are confident it will increase the number of prospective homebuyers.

Miriam Hair, executive director of the Municipal Association of South Carolina, told the media outlet that the legislation is intended to "help jump-start the economy and commercial property sales in the short term, while also assuring the long-range stability of our local governments."

Prospective homebuyers may also save money on their taxes through the Federal Housing Tax Credit program, which has been extended through April, according to the National Association of Homebuilders.

Recent Articles

Related Categories