Here is my first cut at the Tax Credit the new bill contains. Please consult your tax advisor (or congressman….lol) for additional details.
There is a new $8,000 first-time home buyer tax credit.
It does not replace the $7,500 tax credit issued last year (that one must be paid back). If you purchased your home between 4-8-2008 and 12-31-2008 you do not qualify for the new tax credit.
The $8,000 tax credit is available for “qualifying” home purchases from 1-1-09 until 12-1-09 (that is correct, December 1st)
The tax credit will reduce the tax you owe dollar for dollar. This is great! A tax credit reduces the taxes you owe, a tax deduction reduces your taxable income,