Congress enacted legislation providing a tax credit of up to $8,000 for first-time home buyers** to stimulate the economy and revive the housing market.
According to the National Association of Home Builders, the credit is available if you purchase your first home between 1/1/2009 and 12/1/2009. Home buyers will be entitled to claim a total tax credit of $8,000 or 10% of the purchase price, whichever is less. To avoid possible abuse of this credit, it is only allowed for your primary residence.
For more on this legislation, please read these Fequently Asked Questions.
** “First-time home buyer” is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
