First Time Home Buyer Tax Credit

President Obama made it official a few weeks ago when he signed the new stimulus bill….a tax refund for first time buyers of up to $8000 that YOU DON’T HAVE TO PAY BACK!

Here’s how it works…if you are a first time buyer (or anyone who hasn’t owned a home in the last three years, actually) you will qualify for a tax credit of 10% of the purchase price of your first home, up to $8000.

That’s right, I said tax CREDIT not tax deduction.  So, if you are normally entitled to a refund this will come straight back to you.  As long as you live in the home for 36 months you will not have to pay this money back.  This credit only applies to first time buyers who purchase a home between Jan. 1, 2009 and Dec. 1, 2009.

There are a few exceptions, such as if one spouse has owned a house before and the other has not, you will not qualify, etc.  So check with your tax accountant, but otherwise get out there and take advantage.

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