A Little Holiday Cheer from the IRS

First-time homebuyers should begin planning now to take advantage of a new tax credit included in the recently enacted Housing and Economic Recovery Act of 2008.

Available for a limited time only, the credit:

· Applies to home purchases after April 8, 2008 and before July 1, 2009

· Reduces the taxpayer’s tax bill or increases his or her refund, dollar for dollar.  Is fully refundable, meaning that  the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax that  they owe.