BU Bhangra

For prospective home buyers, it is a must to understand home buying tax credit.  Those first time home buyers could be eligible for an $8,000 credit on homes that are purchased no later than spring of 2010.  Thanks to the recently passed legislation, those repeat home buyers may also have the chance to receive up to $6.500 tax credit.

That is just one of the main benefits of a home buyers tax credit.  Also, those home buyers who purchase their homes last year, 2009, can claim their credit either on 2008 or 2009 returns.  Those who purchased their new home this year 2010, can use their returns either 2009 or 2010.  For intelligence personnel, military or foreign service personnel serving outside the United States on their official extended duty for at 90 at least during 2009 and the first four months of this year, they are allowed for an extra year to take advantage of this tax credit.

Law enacted on the 6th of November, last year added the tax credit for repeat buyers.  Those buyers who has lived in one residence for five years consecutively during the previous eight years are qualified for credit as much as 10% of the home’s purchase price and which is up to a maximum of $6,500.