My article on the $7,500 first time home buyer tax credit has become one of the most popular on this site, with well over 200 comments. As part of this month’s economic stimulus bill, that credit is changing to an $8,000 tax credit that, unlike the first credit, will not have to be repaid. Here’s what we know:.
First of all, there is no $15,000 tax credit for new home buyers. That amount was originally part of the economic stimulus bill, but was reduced as part of spending cuts. It’s now an $8,000 credit. Next up, here’s how you qualify for this credit:
- Purchase a primary residence between January 1, 2009 and April 30, 2010 (purchase agreement must be signed by April 30 and you must close by June 30)
- With some exceptions, this purchase must be the first piece of real estate you have ever purchased
- You must stay in the home for at least three years
Update: Read more about how to claim the $8,000 first-time homebuyer tax credit. You may also want to read up on whether it makes sense to buy a home in this recession.
Update #2:Given the fact that I think this $8,000 first time home buyer tax credit is one of the most important financial opportunities for young Americans today; I have expanded my coverage of the credit with a frequently asked questions section.
Ready to go house-hunting? Save time, money, and aggravation by lining up your financing first with a mortgage pre-approval. Read my post on how to get no-obligation mortgage quotes online.
Need to file your taxes? Did you know you can prepare your federal income tax return online and for FREE with TurboTax? Learn more about TurboTax Online Federal Free Edition »