Last year’s tax stimulus package contained a joke of a tax credit for first-time home buyers. Why a joke? Because the 2008 credit was not really a tax credit but a loan that the first-time home buyer had to repay.

A real tax credit is one you get to keep. Of course, to qualify and keep the credit, you have to follow the law.

Now let’s look at the 2009 tax credit for first-time home buyers:

It’s 10 percent of the purchase price, limited to a credit maximum of $8,000.1

It’s refundable.2

There’s no recapture if you keep this home as your principal home for three years after purchase.3

This is a real tax credit.

Don’t Procrastinate!

You have very little time to qualify for this credit. You must buy your principal residence as a first-time home buyer before December 1, 2009.4

Beware. Note the unusual: You need to own the ... Log in to view full article.