| The federal government has recently begun a history | | | | credit, you will get $8000 as a maximum. If 10% of the |
| making incentive to help first time home-buyers make | | | | total cost of your home is less than $8000, you will |
| real estate purchases. If you qualify for the new tax | | | | receive that amount as opposed to $8000. If you are |
| credit, you can get $8000 toward the purchase of | | | | single and earn $75,000 a year or more, you will get |
| your home. | | | | less than $8000, and if you are married and earning |
| First, in order to qualify for the tax credit, you have to | | | | $150,000 in combined annual income or more, you will |
| purchase and make closing on your home by | | | | get less than $8000 back as well. |
| December 1,2009. If you have built a new house, you | | | | If you sell your home within three years of purchasing |
| must be living in it by December 1, 2009. Your home | | | | it under the tax credit, you will have to pay back |
| buying experience, must have taken place between | | | | whatever you received from the federal government. |
| February 1, 2009 (when the credit was first enacted) | | | | This is a restriction applied to help keep real estate |
| and December 1, 2009 (the scheduled end date for the | | | | flippers from benefiting from the tax credit. |
| credit) to qualify. It is likely Congress will extend the end | | | | There was a similar credit in 2008, but it required that |
| date, but you should not rely on that at present. | | | | you pay the money back to the federal government |
| While the tax credit is stipulated for first time | | | | over fifteen years. The current tax credit requires no |
| home-buyers, that categorization is not exact. You will | | | | return of the money. |
| qualify as a first time home-buyer if you have not | | | | This is a refundable credit, meaning that if you owe the |
| owned a home threes years prior to buying this one. If, | | | | federal government nothing or less than $8000 at tax |
| for instance, if you owned a home and sold it five | | | | time, the entire refund of $8000 is refundable to you |
| years ago and have not owned a home since, you | | | | less what you owe. So, if your total tax liability by April |
| qualify as a first time home-buyer under this credit. | | | | 15, 2010 is $2000, you will get $6000 back if you used |
| Don't count on getting the full $8000. Under the tax | | | | the first time home-buyers tax credit for 2009. |