ps the tax credit has nothing to do with your tax rate - income, yes, tax rate , no

*the income the credit is based on is referred to as "MAGI" - which is the........Modified Adjusted Gross Income

Jon - to answer your specific question...............
A buyer who falls within the income* (and other) requirements, who is buying a home for $300,000 should be entitled to the full $8000 tax credit.

* income for full credit for singles is $75,000 - credit reduces and phases out at $95,000
*income for full credit for couples is $150,000 - credit reduces and phases out at $170,000

Best wishes
Debbie Rose
Prudential NJ Properties

Jon,

Here is a bit more information on the tax credit:

• Available to first-time homebuyers only, which includes buyers who have not owned a primary residence, or have not owned an interest in a primary residence, within three years of the purchase

• The home must be a primary residence, which must be purchased and closed between January 1, 2009 and November 30, 2009

• Primary residences in which the tax credit is equal to 10% of the homes value, up to a maximum of $8,000 (Married couples filing separately are eligible for a maximum of $4,000 each)

• First-time homebuyers must live in the primary residence for at least three years (If the homeowner moves, sells or leaves the primary residence for any other reason within the first three years, the tax credit must be repaid)

• Single, first-time homebuyers with an income up to $75,000, or couples filing jointly with an adjusted gross income up to $150,000, qualify for the full $8,000

• The tax credit does not have to be repaid, unless the homeowner moves, sells or leaves the primary residence for any other reason

I hope this information helps. Best of luck!

Regards,
Total Mortgage Services

There is a Federal Tax Credit for First-Time Home Buyers 2009. A first time home buyer is defined as those who have not owned a home in the past 3 years. The tax credit is 10% of the purchase price up to $8000.00, with any unused credit refunded to the purchaser. The amount is reduced for buyers with a adjusted gross income of $75,000. single and $150,000 married taxpayers. There is also a California tax credit available on new home purchases It is always a good idea to consult with your tax Accountant prior to purchasing or selling real estate.

You would get a tax deduction on the real estate taxes paid and mortgage interest paid. You should get a 1098 at the end of the year. Consult w/ your tax preparer.

The answer is different for everyone. Make a call to your tax person to find the answer for you.

It depends on the interest you've paid plus the cost of the sale and your personal income tax rate.