Part of the $787 billion dollar economic stimulus plan is a credit of up to $8,000 or ten percent of the homes value for first time home buyers. With dramatically lower home prices and great incentives available, now is the time to buy.
The first step to qualifying for the $8,000 tax credit is that you must be a first time home buyer. To be considered a first time buyer does not mean that you have never owned a home. It means that you must not have owned a home in the past three years. Most people are not aware of this definition of the term, “first time home buyer”.
The second step to qualifying for the $8,000 tax credit is that if you take the tax credit you must live in the home for three years or you will have to repay the credit.
The third step to qualifying for the $8,000 tax credit is meeting the income restrictions. To qualify, buyers must make less than $75,000 for singles or $150,000 for couples although higher-income buyers may receive a partial credit.
The fourth step is make the home purchase during the offer period. To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009.
The final step to qualifying for the $8,000 tax credit to actually applying to get it. You simply claim the credit when you file your tax return at the end of the year. Yoiu won’t even need to hire an accountant. Pretty easy, right?