From the WSJ – Cracking The New Homebuyer Credit
The recently enacted economic-stimulus law contains an unusually attractive new tax break for many homebuyers — if they can only figure out how it works.
The new law sweetens a provision known as the “first-time homebuyer credit.” In essence, if you meet certain qualifications, such as buying a home from Jan. 1 through Nov. 30 this year, you may be eligible for a tax credit of as much as $8,000. You also have a choice of claiming the credit on your federal income-tax return for 2008 or 2009. A credit is typically more valuable than a deduction, since it eliminates your taxes on a dollar-for-dollar basis — and in this case, you may get it even if you don’t owe any taxes.
Hey, a tax credit I may actually qualify for. I am stoked!
Like they say, read the whole thing