| There are a host of financial incentives provided by | | | | respectively. You can file for availing a joint credit only |
| the federal government to encourage people to | | | | in case either spouse has not purchased a home |
| purchase their own home. The most important and | | | | within the last three years. The couple still has the |
| biggest of these is the one included in the Worker, | | | | option of taking a credit by purchasing the house as a |
| Home ownership, and Business Assistance Act of | | | | single buyer in the name of the spouse who has not |
| 2009. In accordance with the provisions of this act, an | | | | purchased a house in the last three years. |
| amount of USD 8000 is extended as a tax credit | | | | Some important points that you need to note about |
| amount to qualified first time home buyers. It is big | | | | the first time home buyer credit include the fact that |
| monetary benefit to the first time home buyers since | | | | the amount of tax credit available depends upon the |
| one does not have to repay this amount until and | | | | property price The tax credit available equals ten |
| unless the property is sold or is not used as principle | | | | percent of the property purchase price with 8000 USD |
| residence of the beneficiary who claimed the tax | | | | being the maximum amount that can be claimed. The |
| credit. | | | | other key point to be noted that not all homes |
| What are the necessary conditions to be fulfilled in | | | | purchased would qualify for this rebate. Only those |
| order to be eligible to avail this tax credit? In | | | | houses with a maximum price of USD 800,000 would |
| accordance with the IRS definition, a first time home | | | | be considered for granting home buyer credit. To be |
| buyer is a person who has not purchased a residence | | | | included in the list of beneficiaries you have to ensure |
| during the immediate three years preceding his | | | | that you purchase a home by April 30, 2010, sign the |
| purchase. Income levels of single buyers and married | | | | necessary contract papers and complete the sale by |
| couples have been stipulated above which the tax | | | | June 30, 2010 in order to be eligible under this scheme. |
| credit is not available. For properties purchased | | | | The process of making a claim for the home buyer |
| between the periods Jan 1, 2009 to November 05 | | | | credit is easy. Submit two statements namely the |
| 2009, the maximum income level of a single buyer has | | | | HUD-1 settlement statement and the IRS from 5405 |
| to be less than USD 75,000 and in case of couples | | | | and walk away with a maximum credit of USD 8000 |
| who are joint holders, the income levels cannot | | | | provided you fulfill the eligibility conditions stipulated by |
| exceed USD 150,000. Similarly for sale transactions | | | | the federal government. IRS allows all those people |
| executed from November 06 2009 to April 30, 2010, | | | | who buy a home in 2010 to file an amendment to their |
| maximum income level could be USD 125,000 and | | | | 2009 tax return and stake their claim. |
| USD 250,000 for single buyers and couples | | | | |