Hello!

Yes, the tax credit applies to first time home buyers OR buyers who have not owned a property in the last years. That also means the buyer cannot have been on title to a property in the last 3 years. (I have divorcing clients asking me this question all the time.) Here is an excerpt from the HUD policy letter:

Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
Applies only to homes used as a taxpayer's principal residence.
Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

Go to the following link for more information.


http://www.irs.gov/newsroom/article/0,,id=204671,00.html?portlet7

Yes the tax credit applies to only first time home buyers - per their definition - so please read the IRS and Federal Housing Tax Credit sites to determine if you qualify. Of course you can check with a tax consultant, as that is their area of expertise.

Here are a couple sites with official documents/definitions:
http://www.federalhousingtaxcredit.com/2009/faq.php
http://www.irs.gov/newsroom/article/0,,id=206294,00.html

For further summaries (rather than original documents) I have videos and other summary documents should you wish to review them:
http://www.federalhousingtaxcredit.com/2009/resources.html (video)
http://www.tristaterealestateblog.com/2009/02/first-time-hom… (summary page)
http://www.tristaterealestateblog.com/2009/02/further-explan… (summary page)
http://www.teamluca.com/First_Time_Home_Buyer_Tax_Credit/pag… (video)
http://prufoxroach.com/pdfs/taxcreditfaq.pdf (summary page)

If you have further questions on buying or selling, we'd be glad to answer them at your convenience. Our office number is 302-999-6966, cell is 302-740-5872 and of course we have a web site and blog with lots of information if you'd just like to start researching on your own.

Respectfully,

John & Mary Luca (Wilmington, DE)
http://www.SearchTriStateHomes.com

Yes, the tax credit only applies to first time home buyers and it will expire November 30th of this year. Which leaves a very short time to take advantage of the credit. You qualify if you are a first-time home buyer or have not owned a principal residence during the three previous years. Even if you own a vacation home or rental property, you may clain the credit as long as it was not your principal residence. The tax credit is equal to 10% of the home's purchase price up to a maximum of $8,000. You may claim the full credit if your income is $75,000 or less and $150,000 or less for married couples filing jointly. A partial credit may be claimed up to an income of $95,000 ($170,000 for joint filers). Also, any type of home will be considered as long as it is your prinicipal residence, including single-family detached homes, townhouses, condos, mobile homes and even houseboats!

The second part of your question is actually the best part of the credit. If your tax liability is less than the credit, you will actually receive a check from the government! You will need to fill out the IRS Form 5405 to calculate your credit. You can even amend your 2008 return to claim the credit now, if you wish. Your tax advisor is very well informed with all this information.

Hope that helps. If you would have further questions, please feel to reach out to me. My website is listed below.

Thanks, Kim
302-420-4200

Dear Buffaloron

The federal time home buyer credit is for purchasing a primary residence, ( new or resale) with a close of escrow after January 1, 2009 and before December 1st, 2009.
A first time home buyer is a buyer who has not owned a principal residence during the 3 year prior to the purchase.
Good luck to you, I refer my clients to the web site http://www.federalhousingtaxcredit.com
Denise Laugesen
Cashin Company
#1 Producing Agent
Web: http://www.deniselaugesenteam.com
Direct: 650-403-6225
Email: deniselaugesen@comcast.net
DRE: 01011089

Buffaloron

Here is the information provided by the IRS on the Tax Credit...It is well written and easy to follow, there are also Tax Assistance Centers where you can receive answers to your questions and other assistance...

http://www.irs.gov/newsroom/article/0,,id=187935,00.html ...Tax Credit Info

http://www.irs.gov/localcontacts/article/0,,id=98265,00.html ..DE Tax Assistance Centers/hours/addresses/#s

http://www.irs.gov/localcontacts/index.html ....Centers Nationwide

Dunes