In speaking with a lady who called earlier last week regarding the $8000 first time home
buyers credit from the Federal Government I realized that once again there are so many
misconceptions out there for consumers.

It is most certainly not the consumers fault that they are confused.   First, they are told
that it is only for first time home buyers, yet the government fails to promote just as
heavily that the definition of first time home buyer is one that hasn’t owned a home
in the 3 years previous to a new purchase.

The caller also asked if the $8000 credit could be used towards the purchase of a home.

 Sadly, the answer is no. 

 The federal tax credit for first time home buyers that is good through December 1, 2009
can only be obtained after your income tax is filed.   I wish the government had thought
to issue vouchers for home buyers to use instead of waiting, but they didn’t.

 One other misconception:   The tax credit is up to $8000.    If the home that you purchase
is $60,000 for example, then the tax credit to you would be $6000.    (10% of the price of
the home is what you would receive for the tax credit.)   If the home is purchased for $100,000
then the tax credit would be $8000.

 If you would like to see a breakdown of how this tax credit works, and all of the in’s and out’s
of it please click here.  I have a PDF file for consumers to download that explains how this
Federal tax credit works in comparison to the one that was out last year.

 ~Kris Wales~  A partner for your real estate needs in Macomb County MI

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