We hear the term first-time home buyer a lot. However, I gets lots of question as to who exactly counts as a first-time home buyer.
Federally
To qualify for the 2009 first time home buyer $8000 tax credit a person must not have had any ownership interest in a home the three years previous to the DAY of the 2009 sale. This means that if you had owned a home in the past but sold it 5 years ago, you would qualify as a first-time home buyer.
If you own rental property you may still qualify if you have not owned a property considered to be your principal residence in the preceeding 3 years.
If you have never owned a home but your spouse does and you decide to buy a home in 2009 you may still not qualify as a first-time home buyer for the purposes of the tax credit since the IRS has stated that neither the tax-payer nor his/her spouse can have had ownership interest in a home in the preceeding 3 years.
Maryland
To qualify in Maryland as a first-time home buyer a person must never have owned in Maryland residential property that has been the purchaser's primary residence. First-time home buyers in Maryland are exempt from certain real estate transfer taxes.
If you are interested in learning about being a first time home buyer and some of the many benefits of home ownership give me a call 240-481-3565
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