The Housing and Economic Recovery Act of 2008 authorizes a $7500 tax credit for qualified first-time home buyers purchasing a home on or after April 9, 2008 and before July 1, 2009. Here is basic information about the tax credit. I strongly encourage you to consult a qualified tax advisor or legal professional with specific questions pertaining to your unique situation.
Q. Who is eligible to claim the $7500 tax credit?
A. First-time home buyers purchasing any kind of home-new or resale.
Q. What is the definition of a first-time home buyer?
A. The law defines that buyer as one who has not owned a principle residence during the 3 year period prior to the purchase.Ownership of a vacation home or rental property not used as a principle residence does not disqualify a buyer as a first-time home buyer.
Q. How do I claim the tax credit?
A. It's easy. You claim the credit on your federal income tax return. No other applications or forms are required. No pre-approval is necessary; however, prospective home buyers will want to make sure they qualify for the credit under the income limits and the first-time buyer tests.
This is just a few questions that are answered. For a more complete list of questions and answers, please go to http://www.federalhousingtaxcredit.com/
I specialize in working with first-time home buyers. Please feel free to contact me with any questions you may have regarding purchasing a home or qualifying for a loan to purchase your first home.