FEDERAL TAX CREDIT (FIRST-TIME BUYERS ONLY)
Amount: $8,000 if home purchased in 2009, but no more than 10% of the purchase price of the home (half that amount if married filing separately). $7,500 if purchased before 2009.
Expires: December 1, 2009
Only First-Time Homebuyers Can Claim the Credit: In general, buyers can claim the credit if they are a first-time homebuyer. Buyers are considered a first-time homebuyer if:
- They purchased their main home after April 8, 2008, and before December 1, 2009.
- The buyer (and spouse, if married) did not own any other main home during the 3-year period ending on the date of purchase.
Main home. A main home is the one the buyer lives in most of the time. Not limited to new construction. It can be a house, houseboat, house-trailer, cooperative apartment, condominium, or other type of residence.
The Credit Cannot Be Claimed If:
- The buyer's modified adjusted gross income is $95,000 or more ($170,000 or more if married filing jointly).
- The buyer is a nonresident alien.
- The home is located outside the United States.
- The buyer acquired their home by gift or inheritance.
- The buyer acquired their home from a related person.
No Repayment of Credit: There is no repayment of this credit if the home is purchased in 2009. However, the buyer must repay the credit if the home ceases to be their main home within the 36-month period beginning on the purchase date. (Note: For homes purchased before 2009, the tax credit is subject to repayment rules.)
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