First-Time Home Buyer Tax Credit

Here is what you need to know:

1. Who is eligible? First time home buyers with modified adjusted gross income of $75,000 or less to qualify for the full credit and $150,000 for married couples, who along with their spouse have not owned a principal residence in the past three years.
   
2. When does the purchase need to be made? The home must be purchased on or after January 1, 2009 and before December 1, 2009.
   
3. What is the definition of a "First Time Home Buyer"? Someone who hasn't owned a principal residence for three years before buying a house. Owning a vacation home would not count against you. However, if your spouse owned a principal residence in the past three years, you would not qualify.
   
4. What type of purchase is the tax credit good for? A Principal Residence.
   
5. How much is the tax credit? It is 10% of the purchase price, which is capped at $8,000.
   
6. Does it have to be repaid? This Tax credit does not have to be repaid unless you sell your house in the first three years.

If you can qualify based on the above answers, it is a terrific time to buy. If there is any question in your mind about your qualification, call your tax professional for advice.