The recent stimulus plan that President Obama signed into law gives tax breaks to first-time homebuyers.  However, you need to pay close attention to the details so you know exactly which provisions can benefit you, and how.

One of the biggest breaks being trumpeted is a new tax credit for first-time homebuyers of up to $8,000.  This credit is available for qualifying home purchases made this year through December 1, 2009.  This is a true credit, that is, if you don’t plan on moving within three years.  This credit does not have to be paid back.  A tax credit is much more valuable than a deduction.  A credit reduces dollar for dollar the amount of tax you owe.  This credit, combined with super low interest rates, makes now the time to buy your home! 

If you are a first-time buyer and you purchased your home last year, don’t despair!  You can take advantage of the interest-free tax loan up to $7,500, which does have to be paid back, but over a 15-year period.  This is still an excellent opportunity and should not be overlooked. 

Each of these breaks have guidelines to follow so if you are still not sure which first-time homebuyer “credit” you qualify for, contact Don Kingsley Real Estate, your accountant or the IRS directly.

If you are in need of real estate guidance, please feel free to contact me.  I would be happy to share my knowledge with you at no cost or obligation.  If you prefer, email me at donkingsley@kingsleyrealestate.com.