First Time Homebuyer Tax Credit - Summary

Good News!  The new stimulus bill signed by the President last week makes some positive, immediate changes to the first time homebuyer tax credit.  As you may recall, the tax credit was previously $7500, plus it had to be repaid over 15 years or whenever you sold the home.  Last week, this changed to an $8000 CREDIT or 10% of the home's value, whichever is less.  The Credit does NOT need to be repaid as long as you stay in the home for at least 3 years.  Another big plus - if you purchase a home in 2009, the IRS will allow you to get the credit when you file your 2008 tax return.  If you have already filed for 2008, you can still get the credit in the form of a check if you file an amended return.  In other words, if you buy a home before April 15th, you are eligible to receive $8000 or 10% of the value of the home you purchase (whichever is less) by May or June, once the IRS processes your return.