$8,000 First Time Home Buyer Tax Credit

EDGERTON (WKOW) -- Recent homebuyers like Maddie Purnell of Edgerton say the new $8,000 federal tax credit encouraged her to buy a home even in the rough economic climate.

"I couldn't believe it," she said. "I couldn't believe the government is giving out free money."

First time homebuyers can get an $8,000 tax credit if they buy a home between Jan. 1 and Dec. 1, 2009.

Real estate agents are trying to spread the message.

The money can be used to buy anything and does not need to be paid back.

Last year, the government started a $7,500 tax credit program for new homebuyers, but it had to be repaid over 15 years. This one does not.

"Low prices, low interest, and free money," said Edgerton real estate agent Paula Carrier of Best Reality. "Why am I going to wait for better? It seems like a good opportunity and a good time," she says.

Carrier says more of her customers are moving forward with their home purchases thanks to the new credit.

There's a $75,000 income ceiling for individuals and $150,000 ceiling for couples filing jointly. You get 10% of the home purchase price, up to $8,000 in tax credits.

It's a credit -- not a deduction -- which means even if you owe the IRS less than $8,000, you still get the entire credit. The IRS will send you a check for the balance.

If you owe nothing, or the IRS owes you money, you get a check for $8,000, according to the Wisconsin Realtors Association.


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(Article from WKOW 27 News)