Obama stimulus plan includes up to $8,000 of tax credit for those who purchase home first time. At times when real estate business has stalled, this dangling a carrot in front of would-be buyers is aimed at bringing housing industry back to life.
The tax credit is limited to 10% of the home value. First-time purchase means not having bought a home in the last three years; also there is a condition that those who take the bonus should stay with that home for at least three years. The tax credit will not be repaid by the taxpayer.
Taxpayers are allowed to include the credit into their 2008 tax return, even if the purchase was closed on 2009. If the tax return is already filed, an amendment can be filed to claim the credit.