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August 7th, 2008 Sharon
Merritt
Information
about the new tax credit bill that was
passed week.
Frequently
Asked Questions
About the First-Time Home Buyer Tax Credit
The
Housing and Economic Recovery Act of 2008
authorizes a $7,500 tax credit for qualified
first-time home buyers purchasing homes on
or after April 9, 2008 and before July 1,
2009. The following questions and answers
provide basic information about the tax
credit.
1.
Who is eligible to claim the $7,500 tax
credit?
First time home buyers purchasing
any kind of home-new or resale-are eligible
for the tax credit. To qualify for the tax
credit, a home purchase must occur on or
after April 9, 2008 and before July 1, 2009.
For the purposes of the tax credit, the
purchase date is the date when closing
occurs.
2.
What is the definition of a first-time home
buyer?
The law defines “first-time home
buyer” as a buyer who has not owned a
principal residence during the three-year
period prior to the purchase. For married
taxpayers, the law tests homeownership
history of both the home buyer and his/her
spouse. 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.
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