Tom: I heard that there is an $8,000 tax credit for first time home buyers. Is this true?Jo Ann: Is there a good link that you can send me that will explain the first time home buyer tax credit in plain English?
Steve: Alert client Gary from Greenbriar likes this one the best:
http://www.federalhousingtaxcredit.com/2009/home2.html
Jo Anne: Can you tell me whether I qualify for it and what its tax implications are?
Steve: Realtors are not competent to give you accounting and/or tax advice. Good realtors need to be experts 
in the whole process of a real estate transaction. A major portion of that process is coordinating subject matter experts: pest inspectors, home inspectors, loan officers, and settlement attorneys. Your tax and legal questions are often unique to you. Realtors ethically should not pontificate on areas outside their area of expertise but should refer you toward info sources and trained professionals for good advice.
As far as the tax credit goes. It was just extended in November... see the link above for details. It certainly has helped many Fairfax home buyers get into homes that other wise would have been locked out of the market. Here is a relatively clear explanation from the above mentioned web site:
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.”
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