First Time Home Buyer Tax Credit

Many of you are asking about first time home buyer tax credits.  Here are the bones of it, you can go to www.federalhousingtaxcredit.com for more details!

a.) Tax credit available for first time home buyers only. The definition of a first time home buyer: 

 "The law defines a 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 the homeownership history of both the home buyer and his/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 or your spouse qualifies for the tax credit.  Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer."

b.) The maximum credit amount is $7500

c.) The credit is available for homes purchased on or after April 9, 2008 but before July 1, 2009

d.) Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit

e.) The tax credit works like an interest-free loan and must be repaid over a 15-year period. 

You claim the credit on your federal income tax return.  No other application forms are required and no pre-approval is necessary, however, be sure you qualify based on the definition and income limits. 

I've got many, many more details for anyone interested, but I hope this helps with the basics!