Buying your first home may be easier than you think
$8,000 Tax Credit has been extended
In 2009, Congress enacted an $8,000 credit specifically to help first-time homebuyers. To qualify, you can earn no more than $125,000 as an individual or $225,000 as a married couple that files a joint tax return. If you do qualify, you will be able to deduct the full $8,000 from your federal tax liability. Or, if you owe less than $8,000, the government will subtract the amount you owe from $8,000 and send you a check for the difference.
Only first-time homebuyers who purchase their principal residence on or after January 1, 2009 and before April 30, 2010 are eligible. You will also be considered a first-time buyer if you have not had any ownership interest in such a home in the three years previous to the day of your 2009-2010 purchase.
In addition, the extension provided $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 to April 30, 2010.
For detailed information about the tax credit, click on First Time Home Buyers Tax Credit