Well, it’s been brewing for a couple of weeks, and the final pieces are in place for the new Home Buyer Tax Credit.

While it’s not as far-reaching as I’d hoped for, and there are plenty of questions about whether this measure will really do enough, here are the nuts & bolts of the new Home Buyer Tax Credit:

• It’s for first-time home buyers and those who haven’t owned a home during the past 3 years.
• It doesn’t have to be paid back.
• The credit is equal to 10% of the purchase price, up to a maximum of $8,000.
• It’s available on homes purchased between January 1st, and November 30th, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

The big benefit here is that it’s not a loan, like the previous program, and it’s my understanding that it’s a true tax credit, as opposed to being a tax-deduction, meaning you get the full credit, rather than just a reduction in your taxable income.  Check with your CPA for clarification though, to be sure.

So, if you meet the above qualifications, and you’ve been on the sidelines waiting to see what was going to happen, now’s the time to get out and take advantage!

While you're here, don't miss these posts:

1. Congress Sweetening The $7,500 Home-Buyer Tax Credit? Since it was announced in late 2008, the $7,500 home-buyer tax credit has received mixed reviews, mostly because as it currently stands, it has to...
2. Home Buyer Tax Credit Push Still On Home Builders, Realtors and Bankers continue to urge Congress to extend the home buyer tax credit, and from what I see day-to-day, there’s no shortage...
3. Home Buyer Tax Credit Form Several of our buyer clients who’ve purchased a home the past few months qualify for the Home Buyer Tax Credit, so it just seems natural...