There has never been a better time to buy a home for the new home owner! In 2009 the Government will allow a $8,000 tax credit for first time home buyers. There are some rules to keep the system honest.
First the discount is no larger than 10% of the homes value (to get the full $8,000 the home must cost $80,000).
You must not have owned a home within the past 3 years (you or your spouse). If you are single and purchasing the home jointly then you can deduct your percentage of the credit. If you and your parent purchase the home then you can take advantage of half the credit.
You must purchase the home in 2009.
There is an income limit of $75,000 for single and $150,000 for married couples. You can be eligible for a partial credit if your income exceeds these values.
This is a real tax write-off and not just a tax reduction! You add the $8,000 to your Federal Income paid and then receive your refund! This means that you already are getting the tax deduction based on home interest and taxes; now receive another $8,000!!
This is a great deal for the first time home owner. This program can not last for long so it would be wise to capitalize on it today!