The Federal government is offering a excellent incentive to home buyers in an effort to stimulate sales activity on residential real estate. (And I have written six contracts this week so it must be working). The economic incentive is in the form of a tax credit (translation: doe snot have to be paid back). Here are the highlights of the plan:
- The tax credit is designed for first-time home buyers exclusively. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
- The tax credit does not have to be repaid by the buyer
- The federal tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
- The tax credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
- Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
- Frequently asked questions about the Federal Housing Tax Credit
- How To Plan For Home Buyer Tax Credit Before You Buy A Home

