Want the Home Buyer Tax Credit?
Here's the "Who, What, When, Where, and Why"

Time remaining to take advantage of the credit:

$8000 tax credit Real Estate Today Radio One of the most unusual -- and generous -- programs ever rolled out by the Federal Government is the recent $8000 and $6500 tax credits for home buyers.

Whether you're a first-time home buyer, or you've bought and sold dozens of homes, it's an amazing time to buy! And if you have questions about the market, neighborhoods, or how to take advantage of all the buyer benefits out there...talk to a REALTOR^® -- They're the local experts.

Here's what you need to know...

Who is eligible for the tax credits?

$8000 tax credit:
First-time home buyers (those who haven't owned a home in the past 3 years) who purchase homes between November 7, 2009 and April 30, 2010
$6500 tax credit:
Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

What is it?

It's a gift from the federal government. If you qualify, and you buy a home while the program is available, you'll get the tax credit back with your tax refund.

For sales occuring after November 6, 2009, the income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $125,000 for single taxpayers and $225,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

Is there a way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 or 2010 tax return?

Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.

Where is it available?

You are eligible for this tax credit for principal home purchases anywhere in the US, including the US Territories! But, don't forget...The qualifying purchase only includes your primary residence, not a vacation property.

Why?

The Administration and Congress did this to get the nation's economy rolling again. And if you look back through history, programs like this help make that happen. Approximately 30 years ago, during another economic downturn, the government offered $2000 tax credits. And, it worked -- The increased real estate sales helped get the economy back on track.

And remember! You only have to go! After that? The tax gift is gone.

(Don't forget --home sales need occur by June 30, 2010 to qualify, provided they are due to a binding sales contract in force on or before April 30, 2010.)