The $8,000 Tax Credit is about to expire!

For those of you who think $8,000 is a lot of money....you're right!  Given the current turnaround times for puchases, you better act quick in order to not risk losing out on this important tax credit.  This is a credit, NOT a deduction, for first time homebuyers who are closed on their home before December 1st, 2009.

Keep in mind that $8,000 is the maximum.  You can take up to 10% of your homes value or $8,000 whichever is less.  There are some income requirements as well.  In order to take advantage of the full credit, singles cant make more then $75,000; married couples, $150,000.  Again, this is NOT a tax deduction.  It is a tax credit.  Therefore, you can use all the allowable deduction, even if you dont owe $8,000.  i.e. You can end up in the black!

Those not eligible are people who buy their homes from close relatives and non-resident aliens. If you sell your home within 3 years of purchasing it, you must REPAY the tax credit.

More on the $8,000 tax credit for Maryland home buyers: