An $8000.00 gift!

A tax credit is now available for first time home buyers under the American Recovery and Reinvestment Act of 2009. If you buy a home between January 1, 2009 and November 30, 2009, you may be able to receive a tax credit for 10% of the purchase price of your home-up to $8000. Here are the program highlights:

• Any individual (and if married, their spouse) who has had no ownership interest in a home during the last 3 years is eligible
• Full credit for single taxpayers with incomes up to $75,000 ($150,000 on a joint return); partial credit for incomes up to $95,000 ($170,000 joint return)
• available only for the purchase of a single family home that will be used as a principle residence
• home buyers can reduce (or even eliminate) their income tax liability for the year of purchase by claiming the credit on their tax return
• if the home is sold before 3 years, the first time home buyer (who is now the seller) must pay the IRS the entire amount of the tax credit at closing

I short, this tax credit, in addition to presently historically low interest rates and the fact that home prices have become increasingly affordable, make this an ideal time to buy!