*** RELIEF ***

For the first time, the government passed a home tax credit last year giving home buyers a reason to go from renting to owning. There are just a few requirements, 

 

  

 

 ·         You did not own a home in the last three years, and if so, you bought a primary residence in the United States last year after April 9th. 

 

  

 

 ·         You may claim a credit up to $7,500 on your 2008 tax return if you plan to buy a home this year. 

 

  

 

 You’re in luck…the government has increased the credit to $ 8,000 on a home purchased during the 2009 year.   While the initial credit for the 2008 required repayment in varying increments over 15 years at zero percent interest rate, the recently passed legislation eliminates the need for repayment entirely –putting  $8,000 cash in your pocket . 

 

  

 

0A While the size of the credit may still be renegotiated, it will be figured at a percentage of the homes cost, up to the current maximum of $8,000 with limitations relating to your household income level. 

 

  

 

 For household incomes above the limit, you may still claim the credit at a reduced percentage. This incentive combined with low rates, large inventories and affordable prices should put a home purchase well within your grasp.