Homeownership is more than just the American Dream. It's the single-largest source of wealth for the typical family. Homeownership gives you significant tax savings. It allows you to build the foundation for a lifetime of benefits ranging from financing college education for your children to preparing for retirement.

That is why Congress passed two incentive packages last autumn that make homeownership even more attractive than ever before. Thanks to these federal tax credits, first-time and existing home buyers can save thousands of dollars when they enter into a sales contract by April 30 and close by June 30, 2010.

The first-time home buyer tax credit is available to anyone who has not owned a principal residence during the three-year period prior to the purchase. The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000. It does not have to be repaid unless the home is sold or ceases to be used as the buyer's principal residence within three years after the initial purchase.

Current homeowners can also take advantage of a tax credit, which gives them 10 percent of the new home's purchase price up to $6,500. Qualifying buyers must have owned and lived in their previous home for five consecutive years out of the last eight years. For more information on these incentives, visit www.federalhousingtaxcredit.com.

New programs also allow some buyers to use the tax credit at closing for a down payment of other closing costs. FHA borrowers may be able to receive money from the credit immediately through their mortgage holder. Missouri borrowers may qualify for a state loan program that provides an interest-free loan for a portion of the credit that does not need to be repaid until after you receive your income tax refund.

These are not the only advantages to buying new. Deductions for mortgage interest and real estate taxes help reduce a homeowner's tax liability each year. The National Association of Home Builders estimates that a homeowner who falls in the 25 percent tax bracket and has $10,000 in annual mortgage interest payments and real estate taxes could realize federal tax savings of up to $2,500 annually. Additionally, most state and local taxes paid on home are also deductible.

Another savings for homeowners comes when a home is actually sold. The capital gain exclusion allows sellers of a principal residence to exclude money from taxation profits. This means that single taxpayers can exclude up to $250,000 in taxation profits from the sale of a home, while married taxpayers can exclude as much as $500,000.

There are also additional state and federal tax benefits available to homeowners for home improvements, energy-efficient upgrades and more. Homeowners are encouraged to contact their tax professional to find out what tax savings they can receive at the local, state and federal levels.

The homes featured on this year's Spring Homes Tour are the stepping stone to helping you take advantage of all that comes with homeownership. More than 253 homes from across the Greater Kansas City region will open their doors to help you find the right home just in time for the April 30 deadline.

Now is the best time to buy...act before it's too late!