Real Estate Bailout

For anyone who is planning to make a home purchase, 2010 is about to offer the best credit incentives for you to act soon. This federal tax credit is available in all states. Take advantage of a tax credit up to $6500 or $8000, depending on your qualifications. The previous tax credit has been extended to individuals and families who have stayed in their primary homes for 5 consecutive years out of the last 8 years. So you do not have to technically be a first time homebuyer. The credit card companies got their bailout, now it’s time for your Real Estate Bailout.

Who gets $6500 tax credit

Non first time homebuyers who lived in their homes for 5 out of 8 years consecutively.

Who gets $8000 tax credit

First time homebuyers who have never purchased or lived in a home in the last 3 years.

A taxpayer who owned rental property within the past three years is still eligible for the credit. The taxpayer cannot have owned and used a home as his or her principal residence within the last three years.

Anyone who applies must fall under these requirements:

  • Income below $125,000 for individuals, $225,000 for married couples.
  • House value must be below $800,000.
  • Home must be used as a primary place of residence.
  • Participants are over the age of 18 and not a dependent.
  • Must live in the new primary residence for at least 3 years or else credit will be reclaimed.


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