As part of the Economic stimulus bill, home buyers can now enjoy a tax credit worth $8,000 or 10% of the home's value, whichever is less. This is definitely an improvement from the current $7,500 tax "credit" which was passed in July 2008 which was really more like a low-interest loan than an actual credit.
So, how can homebuyers qualify for the credit?
- The purchase must be made between January 1, 2009 and November 30, 2009.
- Home buyers cannot have owned a home for the past three years.
They must also live in the new house for at least three years. If not, the credit will be recaptured on sale.
Buyers must make less than $75,000 for singles or $150,000 for couples.
Read more here.