The new economic stimulus law has brought a favorable tax credit to first-time home buyers.  The $8,000 credit is much more valuable than a regular tax deduction because it is a dollar-for-dollar reduction. Although $8,000 is the maximum amount for the credit, it is based on income, purchase date and the purchase price.  The tax credit does not have to be re-paid unless it is not a primary residence, taking residence of home within a 36-month period, according to the IRS.  The new tax credit  is available for those who meet the following qualifications:

Despite this information being just a general overview of the new tax credit, it should be helpful for those looking to afford purchasing a new home and good news for those who may have purchased last year.  Again, it is a great time to buy with today’s prices and this credit is here to help!

Filed under: LOWER YOUR R.E. TAX, R.E. TAX ADVANTAGES