Many Elk Grove residents may assume because they have owned a home at some point in their life, they can't qualify for First Time Home Buyers tax credit.
The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified First Time Home Buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.
I wanted to post you this definition of a First Time Home Buyer according to the IRS...
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
Hopes this helps to clarify this matter for you!
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