March 30, 2009
Are you considering a home purchase for the first time?
Then you should know about the First Time Home Buyer Tax Credit as modified by the American Recovery and Reinvestment Act.
Some notable changes to the credit include:
1) The credit is increased from $7,500 to $8,000!
2) The credit is now truly a credit. The previous credit had to be repaid. Now it does not!
3) You do not have to be a first time buyer! There is an exception. You can be a previous homeowner but you cannot have owned a principal residence for 3 previous years.
4) The program ends December 1, 2009.
You can view and print the significant details (highlighted in red) as compiled here.
I suppose this is not really “free” money. It’s a credit on your income tax liability for the current tax year so you effectively get to keep more of your own money.