$8000 Tax Credit for 1st Time Home Buyers

by on July 31, 2009

The feds want to stimulate the housing market. They passed the Housing and Economic Recover Act to try to do just that. This is where the credit comes in.

If you are a 1st time home buyer and take advantage of the historic opportunities out there for purchasing a home before November 30, 2009, you can get a federal tax credit of up to $8000! If you pay federal taxes, this is excellent news for you!

The credit is calculated using 10% of the purchase price up to maximum of $8000. So, if you purchase an $80,000 home in Stockton or Sacramento, you will qualify for the full amount of $8000.

You must stay in the home for a minimum of 3 years. If you move before that time, you may have to pay back some portion of that credit. The home you purchase must be your principal residence, not a vacation rental or investment property.

Finally, here is how they define a first time home buyer: If you have not purchased a home in the 3 years prior to the purchase of this new home.

Happy Hunting!

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