1st Time Home Buyer Tax Credit Question 1: What Is a 1st Time Home Buyer?

 Now that the news is out about the American Recovery and Reinvestment act for 2009 , many questions have surfaced about the $8000 first time homebuyer credit.  I will discuss these this week.  One of the first I get is "What Is a 1st Time Homebuyer and who is eligible to claim this tax credit?".    A first time homebuyer is a person who has not owned a home in the last 3-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 3 years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the credit.  However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer.  An example is where a parent jointly purchases a home with a son or daughter.  In this case the person qualifying as 1st time homebuyer may take the credit.  If 2 qualify it may ony be claimed by one or allocated beteen them.