$8,000 Tax Credit

On February 17, 2009, President Barack Obama signed the American Recovery and Reinvestment Act into law.  Basically, it provides for homebuyers as follows:

• Tax credit of 10% of the purchase price up to $8,000.
• Valid for first-time homebuyers purchasing principal residence.
• Credit can be applied to purchases made from 1/01/09-12/01/09.
• Home purchased must be the principal residence for no less than 3 years or credit will be recaptured.
• Applies when taxable income for the year is less than $75,000 (filing single) or $150,000 (filing jointly)