I’ve talked about the first time home buyer tax credit that’s underway right now. This credit allows first time home buyers to claim a tax credit of up to $7,500.
A new and “improved” tax credit has made its way into the stimulus plan we’ve been hearing so much about. If/when the stimulus bill is passed, this new tax credit will replace the old one. Here are some quick facts:
- Up to $15,000 tax credit for ANY home buyers, not just first time home buyers
- You’ll be able to claim the credit on your 2008 tax return
- You won’t have to pay it back
Of course there are some restrictions. The tax credit is equal to 10% of the home sales price or $15,000, whichever is less.
It’s for principal residence only (not investment property). If you sell it before 2 years, you’ll have to pay back the credit.
The stimulus plan is being debated in Washington right now, but so far, it seems most of the politicians are behind the home buyer tax credit.
Of course, the home buyer tax credit could change or get deleted entirely before the stimulus plan is passed and signed by the President.
I’ll keep you updated on it.