$8,000 First Time Buyer Tax Credit...

In case you haven't already heard, there is a first-time homebuyer tax credit of up to $8,000 available for homebuyers who close on a home no later than November 30th of this year.

A first-time homebuyer is defined as someone who has never owned a home or someone who hasn't owned a home in at least three years.

How does it work? The government is offering the lesser of 10 percent of the cost of the home or $8,000 in the form of a refundable tax credit to those who qualify. So if you buy a home for $60,000, the maximum tax credit you'll receive is $6,000. However, once you buy a home for $80,000 or more, you can receive up to the full $8,000. If you've already filed your taxes for 2008, you can file an amendment to receive the tax credit this year. Otherwise, you can file it with your 2009 tax return.

Sound too good to be true? Well, here's some further examples of how it's calculated. Let's say you owe $5,000 in taxes, you will receive a check for $3,000. If you don't owe any taxes, you may qualify to get the entire $8,000. And if the government owes you money -- let's say $1,000 -- you could potentially receive a credit of up to $9,000.

The qualifying home must be a single-family, primary residence. This can include condos, co-ops and townhomes. Your income also has a bearing on the credit. The full amount of credit is available to individuals with gross incomes of no more than $75,000 and $150,000 for married couples.

The best part of this credit is that there's no repayment as long as you don't sell the home within three years of purchase. If you choose to do so, the full amount is due back to the government at the time of sale.

So if you're thinking of buying, you want to have a home under contract in time to close and take possession of the home by November 30 of this year!