If all these tax credits are confusing you, never fear! Here’s a simple, easy-to-understand source to make it all clear.
In 2008, Congress enacted a $7,500 tax credit designed to be an incentive for first-time homebuyers to purchase a home. The credit was designed as a mechanism to decrease the over-supply of homes for sale.
For 2009, Congress has increased the credit to $8,000 and made several additional improvements. This revised $8,000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.
Read all about it, including frequently asked questions, sample scenarios and more at Realtor.org.