Pulling your hair out in trying to figure out how you can take advantage of the recent tax break announced for buying homes.  Let me simplify the complex language from the IRS.  First, there are two differnt tax breaks, but since the 2008 time has basically passed, here are the key points for the "2009 First Time Buyers.

  • Must be your first home purchase for your primary residence (this means you and your spouse if married, did not own any other main home during the past three year period ending on the date of purchase.
  • You must purchase (close) on your home between January 1 and November 30, 2009
  • You will receive a tax "credit" of 10% of the purchase price up to $8,000 ($4000 if married and filing seperately) for the purchase.
  • The amount  of tax phases out for buyers whose gross income is more than $75,000 for individuals or $150,000
  • Great news!!!  Unlike the 2008 Tax Credit for home buyers, you do not have to pay the credit back PROVIDED YOU remain in your home for 36 months after the purchase date.
  • You can get any additional information by going to www.irs.gov and look for Form 5405

So I urge you if you are hunting for your first home, this is the time to buy to take advantage of this tax break....