A couple of weeks ago, the new president signed into law the economic recovery act which includes a home buyer tax credit.
As far as who is eligible for this tax credit, the new law says first-time home buyers purchasing any kind of home-new or resale- are eligible for the tax credit.
Do not despair as their definition of first time home buyer is a buyer who has not owned a principal residence during the three year period prior to purchase. In other words, if you have not owned a home you live in for the last three years, then you qualify.
The tax credit is equal to 10% of the home's purchase price up to a maximum of $8000.
This tax credit is unlike what was enacted last year which was essentially a tax free loan. This is not a loan but a tax credit against what you would normally owe in income taxes.
For a detailed look at this new home buyer's incentive program please click here.
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