Tax Credit vs. Tax Deduction

Most Escondido home buyers are aware of the first-time home buyer tax credit.  Current owners of Escondido real estate are aware of the $6,500 tax credit.  But are these real credits or are they tax deductions.  They are real credits.  The importance of the tax credit is that it is a dollar-for-dollar tax reduction.  For example, if a first-time Escondido home buyer were to owe $10,000 in taxes, after the credit they would owe $2,000.  Better yet, this tax credit can be refundable in some cases.  If the elgible buyer owed nothing in taxes, they could get a check from the IRS for $8,000 or $6,500 depending on the program.  For more information see “First time home buyer tax credit extension” or contact Gary Harmon, your Escondido Realtor.  You can also get great information from the video below.