Sunday, February 08, 2009

Home Buyer Tax Credit-update


The tax credit is 10% of the purchase price up to $15,000.The tax credit is for one year (from date of enactment).The credit is available for both new and existing home purchases.

This is for primary residences only, and the home must be owner occupied for two years after purchase.

There is no income cap (the $7,500 tax credit had an income cap of $150,000 per year).Unlike the $7,500 tax credit, the new credit does not have to be repaid over time.The credit is limited each year to the amount of taxes paid in any one year (with the $7,500 tax credit, buyers received the entire credit and a refund if the $7,500 was greater than taxes for the year)Buyers can split the $15,000 into two separate tax credits to be taken in successive years.

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