HOMEBUYER TAX CREDIT?

The US Senate will be voting Tuesday, it appears. The stimulus package they will be voting on includes a $15,000 home buyer tax credit (or 10 percent of a home's selling price, whichever is less) This credit would apply to all buyers of a principle residence home.

The current version of the tax credit included in the stimulus package – which still must be approved by the House and signed by the president – would work as follows:

A tax credit of up to $15,000 will be issued to a home buyer for a principle residence purchase within one year of the passing off this legislation. As long as you keep your home for more than two years, you do not have to pay back the credit.

There is currently a $7500 first-time home buyer credit available, this will be replaced by this legislation.

You can claim this tax credit on your 2008 taxes.