Home Buyer Tax Credit

Within all the billions of dollars in stimulus money allocated by Congress, there was a simple plan to help home sales.

This $8,000 tax credit plan gives a tax benefit to people who buy a new home.

This tax credit is available for both new first time buyers, as well as people who have lived in their current home for at least 5 years.

First time buyers can qualify for a tax credit up to $8000, while home owners can qualify for up to $6500.  There are certain limits: Your income must be less than $225,000 for married couples ($125,000 for singles) and your house can not cost more than $800,000.

Also, the house must be under contract by April 30, 2010 - which is when the credit expires.  It is not certain whether the credit will be extended.

I this credit can really help because it can spur potential buyers (who are currently sitting un-decidedly on the fence) into taking action.  There is a huge inventory of unsold houses, and home prices won't start to rise until that inventory is reduced.  So I'm sure that real estate people are really excited about this credit.