What You Need to Know About the $8,000 First Time Home Buyer Tax

What You Need to Know About the $8,000 First Time Home Buyer Tax Credit
 

 
Who Qualifies for the Tax Credit?
            
Never owned a home
Have not owned a home within the last 3 years--determined by HUD 1 date when previous home was sold
Purchased a home to be a primary residence between January 1 and November 30, 2009
Owned a rental property or vacation home which was not used as a primary residence over the last 3 years
If married and one person owned a home within the last 3 years, the other did not, they do not qualify
If unmarried and one person owned a home within last 3 years and other did not, they can "designate" the tax credit to the one who is considered the FTHB.
If parents cosign on a mortgage (and own a home) and the child is a FTBH, they are eligible for the tax credit.
Non-US Citizens may qualify if they meet resident-alien status (IRS Pub 519)
Revenue or Housing Bond financing are eligible for tax credits.

Types of Properties
Primary Residence - Single family, 2-4 units (must occupy one unit) town homes, condos, manufactured homes, mobile homes and houseboats.
New Construction - "Purchase Date" is the date the owner occupies the home (between Jan 1 and Nov. 30, 2009) Note: They could have owned land and are in the process of building.

Income Limits
$75,000 Single Person (Partial Credit up to $95,000)
$150,000 Married Couple (Partial Credit up to $170,000)
Based on Adjusted Gross Income (AGI) line on IRS Form 1040, 1040A or 1040EZ

Amount of Credit

    10% of Sales price
Up to Maximum of $8000
Partial Tax Credit if income exceeds $75,000 or $150,000

Repayment Tax Credit

 
If sold within 3 years, the entire tax credit needs to be repaid! After 3 years, no repayment is due.