The “Housing and Economic Recovery Act” was signed into law on July 30, 2008 and what this means to you is that any first time homebuyer (an individual who has not had an ownership interest in a principal residence in the previous three years).

Various guidelines and restrictions apply:

• -Single or Head of Household homeowners can make up to $75,000 or, if filing jointly, $150,000. This does not mean you will not be able to benefit if your income is somewhat higher… you may still see a reduced tax credit up if your income is up to $95,000 if filing as Single or $170,000 if filing jointly.
• -The tax credit is for 10% of the purchase price of the home, up to a maximum of $7,500.
• -Any condo, single family home, or coop is eligible.
• -You may not resell the residence within 15 years to avoid having to repay any portion of the tax credit. If you do sell, a portion of the tax credit will have to be repaid.
• -The homeowner can claim the tax credit for the year of purchase on his/her tax return for that year.
• -First time homebuyers have until June 30, 2009 to purchase their eligible home.

See your CPA or tax preparer for specific details. More information may be found at http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf