The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the homeâ€™s purchase price up to a maximum of $8,000.
The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
If you meet the requirements, participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase.
For an overview of the plan I would visit: http://www.federalhousingtaxcredit.com
If you have any questions please do not hesitate to contact me.
RE/MAX Gold Coast Realty
56 Newark Street
Hoboken, NJ 07030
Direct: 201 795-5200 x340
Office: 201 795-0100
Fax: 201 795-1245
This chart provides an "old vs. new" FTHB Federal tax credit summary:
This is the recently updated IRS form that covers BOTH of the Federal Tax Credit(s):
For never-occupied houses and condos bought between March 1, 2009, and March 1, 2010 there is also a $10K California tax credit for first time buyers. Repayment isn't required if you live in the home at least three years. Phase-out of the credit remains for an AGI above $75,000 for singles and $150,000 for joint filers.:
You can reach him at (916) 705-4958 if you want to ask him directly, but because it's almost 4/15 and he may be busy you can also access the IRS website at http://www.irs.gov/newsroom/article/0,,id=177937,00.html
for some information on that.
Here is an awesome link to the best website available on the tax credit. It will answer any and all questions you might have.