HOMEBUYER TAX CREDIT

One of the key provisions of the American Recovery and Reinvestment Act that President Obama signed into law earlier this year was the tax credit for homebuyers.

There is an $8,000 tax credit that would be available to first-time home buyers on the purchase of their principal residence on or after January 1, 2009 and before December 1, 2009 and does not require repayment.

How does the credit work? The credit could be claimed on a tax return to reduce the purchaser's income tax liability and the unused credit amount would be refunded as a check to the purchaser.

There are several options concerning the tax credit and IRS guidelines can be found HERE.

Realtor.org also has the answers to frequently asked questions HERE.

This article is only meant to provide available information concerning the tax credit. As with any legal matter, we strongly encourage you to consult a qualified tax advisor or legal professional about your own situation.