The steady decline in housing prices over the past few years has been due primarily to the decrease in home sales. The housing market is heavily affected by the economy. The government recognizes this and has put into action laws that are aimed at increasing property sales.

In 2008, the law on Tax Credit for Home Buyers was initiated and by 2009, was revised further. The revision in 2010 saw new legislation being created for tax credits, based on newer developments in the economy.

The new home buyer tax credit approved in 2010 much is less stringent, allowing a more taxpayers to qualify for the credit needed to buy a new home. Below is a comprehensive summary of what this law is all about and what the requirements are in order to be eligible for the home buyer tax credit.

The status of individuals and their incomes are considered with clear guidelines, and the facilities are meant for first-time buyers who have not been owners of a main or primary property in the previous three years. Gross income for a buyer who is single must be between $125,000 and $145,000 and married couples must be earning between $225,000 and $245,000 to qualify.

For homes worth more than $800,000, no tax credit will be given as stated by the newly revised law for 2010. An age limit of 18 years old upon closing date is also established in the revised law.

Because the revised law is only applicable for the home purchases made after November 6, 2009, the 2010 tax credit for home buyers requires a proof of purchase with a properly executed settlement statement to their tax return or experience great inconveniences with government officials.

Because of the changes done for the law, the rules for home purchase tax credits are quite complicated even though the revision allows for less stringent requirements. This must be researched to the fullest extent in order to more smoothly purchase your first home. For a more help and a reliable reference, a comprehensive and detailed information on the topic can be found in the IRS website, irs.gov.

The IRS website also has instructions on how to apply for the tax credit if you qualify as well as a frequently asked questions section to help you understand the law. The website provides a home owner with all the requirements and qualification regarding the tax credit.

This writer has been contributing articles about buying homes for the previous five years. In addition, this writer enjoys providing knowledge with respect to New York neighborhood subjects, like Hudson Heights real estate and Alphabet City apartments.