The Housing and Recovery Act of 2008 states that a "First Time Home Buyer" is a buyer who has not owned a principal residence during the 3 year period prior to the purchase. For married taxpayers, the Law tests homeownership of both the home buyers 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 First Time Home Buyer tax credit. Visit the website by NAHB at: www.federalhousingtaxcredit.com for more information.
Credits as of July 2008:
The following applies to all qualified purchases on or after April 9, 2008 but before January 1, 2009.
Repayment begins for 2010 tax year. | Credits as of January 2009: The following applies to all qualified purchases on or after January 1, 2009. |
| Credit Amount= Lesser of 10% of the cost of the home or $7,500. | Credit Amount=Lesser of 10% of the cost of the home or $8,000. |
| All principle residences eligible. | Same as July 2008 features. |
| Credit can be claimed on tax return to reduce income tax liability; refund received for unused amount when tax return is filed. | Same as July 2008 features. |
| Income limits apply- Full amount of credit available for those with adjusted gross income less than $75K ($150K joint). Phase out about those caps $95K & $170K. | Same as July 2008 features. |
| No credit allowed if home financed with state/local bond funding. | Eligible for credit if revenue bond financing was used. |
| 6.67% of the credit or $500.00 would be repaid each year for 15 years starting with 2010 tax filing. | There is no repayment for purchases on our after January 1, 2009 and before December 1, 2009. |
| If home is sold before 15 year repayment ends, the outstanding balance is recaptured upon sale. | If home is purchased in 2009 and sold within 3 years the entire amount is recaptured on sale. |
| Program ends July 1, 2009 | Program ends December 1, 2009 |
