With the recent extension of the tax credit up to $8,000 for the new homes bought by first time buyers, the Government is expecting to boost the sales of the real estate market, bringing into its ambit a larger group of people owning homes. The tax credits pose certain benefits to the public in general. These benefits are:
• Beneficial for those in the income group up to $125,000 for single taxpayers and $225,000 for couples
• The tax credit is refundable in the sense that if the taxpayer owes little or no tax liability towards the government, he would still be able to get a check for the remaining amount or the entire amount from the government.
• Tax credit may also be used to apply towards the FHA financing, through which down payment and other closing costs may be covered.
• Houses of all types that are being used for the purpose of residence with a value of up to $800,000 come under the tax credit scheme. These include houseboats, condominiums, single family homes and manufactured homes.
• The scheme extends to homes purchased on or before June 30, 2010 with the condition that the sale contract must have been signed before or on April 30, 2010.

To learn more about the Real Estate Bailout check out the link.