How the homebuyer tax credit would work

The current version of the tax credit – which still must be approved by the House and signed by the president – would work under the following rules in the bill passed by the Senate:
• Up to a $15,000 tax credit (claimed as part of federal income tax) for any principle residence by any homebuyer
• Actual amount of credit would be based on 10 percent of the purchase price of a home or $15,000, whichever is less
• The tax credit does not have to be paid back, unless the buyer sells the home within two years or less
• Purchases must take place within one year of the legislation’s enactment
• The credit may be claimed on 2008 income tax form
• If enacted, this new tax credit would immediately negate the $7,500 first-time homebuyer tax credit currently available

Hopefully something will stimulate the economy only time will tell. We need all the help we can get on these times. More will be revealed in the upcoming months.....