New 8,000 Tax Credit For First time Home Buyers- No Repayment

By
Real Estate Agent with Hunt Real Estate- Columbus Division

The "American Recovery and Reinvestment Act of 2009," passed the House and Senate on Friday, February 13,2009
(edited)The President did sign this bill on Feb. 17th.   The new bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. 

This credit does not require repayment as long as you stay in the home three years, or more.


A first time home buyer is defined as someone who has not owned a property in the last three years.
This credit can not be received if a first time buyer purchases a property to rent out.  It has to be your principle residence.
This credit applies if you purchase a single property residence, or condo, or a townhouse. 

The income requirements are maximum $75,000 for a single buyer, and $150,000 for a married couple.
 

The credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

Comments (41)

Anonymous
Matt

My inlaws have always owned their own house. December of '08 my father-in-law died. Now my mother inlaw has to sell their old house and buy one my wife and I can share with her. This will be the first house SHE has bought, even though THEY have always owned one. Will she be able to claim the $8000 because SHE is a first time home buyer.

Apr 20, 2009 12:02 AM
#22
Anonymous
David Williams

Hi,

I sold my home and closed on it in Aug. 2006. I have rented ever since. Do I have to wait till Aug. 2009 to buy my next principal residence to get the tax credit?

Thank you.

 

Apr 20, 2009 02:49 AM
#23
Anonymous
izzy

do we qualify for the 8000 tax credit if i'm building my first home

May 01, 2009 03:36 AM
#24
Kristal Perrone
Hunt Real Estate- Columbus Division - Rochester, NY
Associate Broker

Matt,

If her name was on the deed, I don't think she would qualify.

David- You can put an offer in the month of August.  If you're getting financing it wont close for awhile anyway. 

Izzy- Yes

May 05, 2009 01:09 AM
Anonymous
Carol

What if the first time home owner needs a cosigner to get a loan and the cosigner already owns a home?  Would the first time home owner be disqualified for the $8,000?

May 11, 2009 11:48 AM
#26
Anonymous
Vanessa

Yes, I am in the same situation.  My husband and I have been renting since we've been married.  I'm a student in graduate school.  My husband and I don't make enough to qualify for the amount that we need.  So either my father was going to lend us the difference that we needed as a downpayment.  We also were wondering if he could co-sign the for the loan, he would not be put on the deed.. would this affect us in getting the 8,000 credit?

May 17, 2009 02:08 PM
#27
Anonymous
Adam

Hello:

Long story short, I just bought a first home 5/09 and am eligible for the credit. Circumstances have changed and I am looking to sell the same residence this year. Will I be able to claim any of the credit still (36 months ownership rule in irs literature in order to have to repay). Will any losses or gains be affected by the credit? What if I don't file for the credit on my 2009 taxes - can I still claim part or all of the credit if I but another home this fall? Thanks for the feedback...

May 18, 2009 06:38 AM
#28
Anonymous
beckymom3

Question?  I have never owned a home and will be looking to buy in 2009.  My husband was seperated from his ex-wife in 2002 and left their home in 2002. However, their divorce was not finalized and his name taken off of their home until 2007.  Do we qualify for the $8000 firsttime homeowner credit?  That home was not his principal residence since 2002 although he was on the loan until 2007.

May 22, 2009 02:04 AM
#29
Kristal Perrone
Hunt Real Estate- Columbus Division - Rochester, NY
Associate Broker

Carol,

The property would have to be in the name of the first time home buyer only. 

Adam,  It is my understanding that you have to live in the home for three years in order to qualify.  If you sell, it will have to be repaid. 

May 29, 2009 07:13 AM
Anonymous
christy

I am going through a divorce and it should be final in July 09, separated since October 08. My husband owned our home & it is considered by the court to be "pre-marital." My name was never put on the house, even after we married. He obviously is keeping the house. I have been pre-approved to purchase a house of my own after the divorce is final, however, will I be eligible for the $8000 first time home buyer's credit? Thank you for your time.

Jun 07, 2009 03:08 PM
#31
Anonymous
Anonymous

I am in the same situation, however I am building a home and I will likely close before the divorce is final.  Am I still eligible  for the tax credit?

Jun 19, 2009 04:18 AM
#32
Anonymous
tom meny

I understand for a single buyer, the tax credit is capped out for $75000 income.  What if my income is significantly less this year (under the 75000) than it was last year (over 75000)?  Can they use my 2009 info? or must it be my 2008 return?  thanks

 

tom

Jul 01, 2009 05:19 AM
#33
Anonymous
Chana

I am waiting for a large insurnance claim to pay out. I am waiting for this to pay outright in cash for a condo and leave my husband.  Will I qualify for the tax credit if I buy a condo before the end of the year and am separated from my husband. I did not file a joint return with him last year because of our issues.

Thanks.

Aug 02, 2009 01:51 AM
#34
Anonymous
Eli H.

Question:

Me and my friend want to purchase a home to live in. He has never purchased or owed a home so I know he qualifies for the tax credit. On the other hand, I own a home which I have been renting out for almost two years.

However, if we apply for a mortage loan together (with me being a co-signer) will he still qualify for the 1st time home buyer's tax credit? We also both make 30k a year, which is 60k together.

Thanks.

Nov 18, 2009 05:33 AM
#35
Kristal Perrone
Hunt Real Estate- Columbus Division - Rochester, NY
Associate Broker

Eli,

He may qualify.   He'll need to check with his accountant. 

Nov 23, 2009 09:01 AM
Kristal Perrone
Hunt Real Estate- Columbus Division - Rochester, NY
Associate Broker

Chana,

If your name was on the deed, you would not qualify as a first time home buyer. 

Nov 23, 2009 09:06 AM
Anonymous
Tia Peterson

I am going through a divorce and it should be final in July 09, separated since October 08. My husband owned our home & it is considered by the court to be "pre-marital." My name was never put on the house, even after we married. He obviously is keeping the house. I have been pre-approved to purchase a house of my own after the divorce is final, however, will I be eligible for the $8000 first time home buyer's credit? Thank you for your time.

PLEASE PLEASE PLEASE let me know . I can't find the answers anywhere.

Nov 29, 2009 08:51 AM
#39
Anonymous
Frank

My wife and I are looking to buy a home with in the next couple of months. We are both first time home buyers and might have to have her mother cosign on the loan for us. Can my wife and I still clam the first time home buyer credit if her mother already owns home and will not be living in the home purchased?

Dec 11, 2009 12:21 PM
#40
Anonymous
Richard

I bought my home in April of 09 got the $8000 credit. lost my job in sept 09 and put the house up for sale, I could no longer afford it... Found new job with a much lower pay scale in adifferrent state. relocated to that state and now rent a home. In March my home will be sold and I know I must repay the credit, But if a but a new home will I still have to repay the cedit? And if I do what provisions will I expect next tax season? time payment? etc.

Feb 17, 2010 07:57 AM
#41
Anonymous
JJ

I have a question. My sister & I purchased a home in 2009. We each received back $4000.00 for First Time Homeowners Credit. My sister is the first borrower on the loan. She plans to stay in property for the required 3+ years. I am thinking of moving out. Would we be responsible in repaying back the $8000.00 credit? If so, do we have to pay back in one lump sum? Any help I can get on this issue would be greatly appreciated. Thanks.

Apr 27, 2010 06:28 AM
#42

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?