Now Senate has passed a new homebuyer tax credit to all buyers who claim a property as their primary residence will get a tax credit of 10% of the purchase price up to $15,000 tax credit.
- The current version of the tax credit still must be approved by the House and signed by the president
- If passed, the homebuyer would be eligible for a tax credit up to $15,000 for federal income tax for any principal residence by any homebuyer
- Actual amount of credit would be based on 10% of the purchase price of the home or $15,000 which ever is less.
- The tax credit does not have to be paid back, unless the buyer sells the home within 2 years or less.
- Purchases must take place within one year of the legislation enactment.
- The credit maybe claimed on 2008 income tax form.
- If enacted, the new tax credit would immediately negate the $7500 first time homebuyer tax credit currently available.