First-time Home Buyer Tax Credit

Enacted as Part of Housing Stimulus Package

1.  Who is eligible to claim the $7500 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 or 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.