Homebuyer Tax Credit

Congress and the White House  appear to have reached agreement on a $789.5 billion economic-recovery package. this clears thepath to a final votes late this week in Washington.

The bad news is that certain tax breaks, including the homer buyer tax credit, were scaled back to $8,000 from the proposed $15000 to get sufficient support for the stimulus bill's approval. This is $500 more than the current home buyer tax credit , this will be available for qualifying home purchases this year between January 1, 2009 and September 1, 2009. (dates still to be finalized).

However, the final stimulus plan did leave in the $3 billion provision that would eliminate the repayment requirement for the tax credit for first-time home buyers~ it is my undersatnding that this should be available to those using or have used the current home buyer tax credit. This means that the home buyer tax break is a true tax credit and not a deduction, so will be an actual $8000 reduction on your next tax bill.

Please add your comments! If anyone can add to this knowledge base I would truly appreciate it!!

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