Unless you’ve been living under a rock for the past year and a half, you’ve no doubt heard that the federal government is giving first-time and repeat home buyers a credit on their income taxes for buying a new home.  The credit was intended to spur activity in the stagnant real estate market and to give home buyers a cash incentive to invest in home ownership.

First-time home buyers may qualify for up to an $8,000.00 credit. A first-time home buyer is considered to be anyone who has not owned a primary residence in the last three years.

Current homeowners, who are selling their primary residence to purchase a new primary residence, may qualify for up to a $6,500.00 credit. The homeowner must have lived in their primary residence for at least five of the last eight years.

There are some income limits and other restrictions. For more information about how the tax credit works, see my previous post “Timing is Everything; First-Time Home Buyer Tax Credit Increased for 2009.”

Unlike last year, there is little chance that the tax credit will be extended beyond April 30th. But there’s still time to take advantage of the credit if you act quickly.

Contact me for more information.

Helpful reading:

Related posts:

1. Closing Deadline Extended to September 30th for Home Buyer Tax Credit
2. TIMING IS EVERYTHING: First-Time Home Buyer Tax Credit Increased for 2009.
3. First-Time Home Buyer Tax Credit Extended