By now you have probably heard about the Tax Credit for Homebuyers. If not then you really should read this. This is an incredible time to buy a home in Fremont.

First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit.

Remember a tax credit is very different than a tax deduction - a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Beware buyers will have to repay the credit if they sell their homes within three years.

Tax Credit versus Tax Deduction

It's important to remember that the $8,000 tax credit is just that... a tax credit. The benefit of a tax credit is that it's a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a homebuyer were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, they would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a homebuyer is liable for $4,000 in income tax, they can offset that $4,000 with half of the tax credit... and still receive a check for the remaining $4,000!

There is a lot of free information available to you about buying, selling or investing in Fremont real estate. For complete information about the Fremont Ca real estate market including current Fremont homes for sale, property values and more please visit the most complete website dedicated to everything Fremont real estate related.