My wife and I are first time homebuyers. We are thinking of buying a house that is around $150,000. Would we get the full $8,000 tax credit, or just a percentage of the house value? I read somewhere that it is only 10%, which would mean only $1,500 in tax credit. That's not really enough to make us take the plunge.
The credit is 10% of the purchase price which means that any home that has a purchase price that is $80,000 or greater receives the full tax credit as long as your income is below a certain amount (check the income limitations).
10% is correct, not 1%. $150,000 times the correct percentage is $15,000, so you would get the full $8,000, if you qualify.
I would strongly suggest a math refresher course. 10% of $150K is NOT $1,500.
You better close quick, you only have about 24 days or so under current law.
Helen, EA in PA