How Do You Get An $8,000 Tax Credit On A First-Time Home Purchase?
How does an $8,000 tax credit sound if you are buying your first home? Thanks to a federal government stimulus program first-time home buyers may be able to take advantage of a tax credit for homes purchased in this year. The program is spelled out in the The American Recovery and Reinvestment Act of 2009. Here is what you need to know. First. You’ll need to act fast. The credit applies to purchases that close before Dec. 1, 2009. Second, it applies only to homes used as a taxpayer’s principal residence. Third, the credit will either reduce your tax bill or increases your refund, dollar for dollar. The credit will be paid out even if you owe no tax or the credit is more than the tax owed. Figure out whether you qualify. The credit is good for up to $8,000, or 10% of the purchase price, and applies to people who have not owned a home in the United States in the previous three years. Any home purchased as the taxpayer’s principal residence and located in the United States qualifies. Vaca
