Question Details

Rachel, Home Buyer in Chicago, IL

I bought my first home in February 2008...why do I not qualify for the credit? Why the cutoff of April 2008??

Asked by Rachel, Chicago, IL Mon Apr 6, 2009

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5
Thanks everyone...this is what I thought..just dumb luck that I bought two months too early :( It is unfortunate but certainly things could be worse!
0 votes Thank Flag Link Tue Apr 7, 2009
Rachel - I just checked - April 9, 2008 was the start date! Sorry - you missed it!
0 votes Thank Flag Link Mon Apr 6, 2009
Dana - Rachel is referring to the first time home buyer tax credit..........in 2008 it was for a max of $7500...the current, 2009 credit, is for up to $8,000, and does not have to be repaid like the 2008 credit. You must live in the home 3 years, though..

Also, there are income limits. Singles can earn 75,000, married couples 150,000 - the tax phases out above those figures. Closings must occur by Dec 1, 2009 to qualify. The credit is clalculated on 10% of the purchase price - not to to exceed 8,000.
0 votes Thank Flag Link Mon Apr 6, 2009
Rachel - I assume you are referring to the original tax credit of 7500 - not the newer, current one for $8,000 - which is just for 2009 - one must close between Jan 1, 2009 and Dec 1, 2009 to qualify. It does not have to be repaid.

It is my understanding, and I am sure you can google this to verify it - that the original tax credit in 2008 (which was for 7500, and had to be repaid over a certain timeframe) lasted from July, 2008 to the end of the year, when this new credit became available (but maybe you are correct with your April date)....In any event, If you closed in Feb., you were too early , regardless of the date - it was NOT a retroactive credit, and did not cover all of 2008.
You can always verify this with your tax preparer, if in doubt.
Debbie
0 votes Thank Flag Link Mon Apr 6, 2009
If you can provide more specifics,someone here will be happy to help you. Give us some details!
0 votes Thank Flag Link Mon Apr 6, 2009
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