How to Get $8000 For Purchasing Your First Home

If you are ready to purchase your first real estate property,  you are in for a real treat!  With the recent passing of the American Recovery and Reinvestment Act of 2009, first-time home-buyers (only) can receive up to an $8,000 tax credit for a principal residence (meaning you must live in the home) that is purchased and closed by November 30, 2009. 

The tax credit does not have to be repaid as long as you stay within the home for a minimum of 36 months.   So when you couple this with the still deeply discounted home prices and low interest rates, this is definitely the best time to buy!

What does it mean to receive a tax credit?  Well, when you do your income taxes this year, you can claim the tax credit and if you do not owe the government anything, you will receive up to $8,000 plus any refund you are owed - hooray!!  If you do owe Uncle Sam once your taxes have been filed, then the tax credit can be deducted from the amount owed - still being a great benefit in lessening your debt by the tax credit you are given.

For those of you that may say, “Hey! I just bought a home so what about me?”  Do not fret - if you closed on a new home as a first-time home buyer as of January 1st, when you file your taxes you can still get this tax credit of up to $8,000. 

Visit http://tax.cchgroup.com/Legislation/House-Senate-Recovery-Act-2009.pdf to see other consumer benefits of the new law and check out http://www.irs.gov/newsroom/article/0,,id=204671,00.html for more details about this specific tax credit, including how to file for it (using IRS form 5405).