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First-time homebuyer: How does $8,000 from your Uncle Sam sound?
 Woud you like an extra $8000 to purchase your home? If you're a first-time home buyer then we have a nice suprise for you. Last fall, the Federal Government introduced a financial incentive to prospective first-time homebuyers — an income tax credit of up to $7,500. The rules were simple: you must have been a first-time homebuyer (as defined by not owning a home in the previous three years) and you met certain income restrictions.
Great news!!! It’s not a deduction; it’s an actual credit and does not need to be repaid!
Note: First timers who qualify can make no more than $75,000 in adjusted gross income if they’re single or $150,000 if filing jointly. The maximum tax credit is $8,000 or 10 percent of the sales price of the home, whichever is less. Three years residence in the property are required. As always, check with your accountant for details and be sure to submit IRS form 5405 when you file your taxes.
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