NH Homebuyers - $8000.00 for First Time Home Buyers! The FAQs

NH Homebuyers - $8000.00 for First Time Home Buyers! The FAQs

November7,  2009 -- UPDATED INFORMATION:

Congress has passed new legislation that:

Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.

Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

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Here are the basics!  If you require more detailed information check out the www.IRS.gov site or contact your tax preparer.

Am I a first time buyer?

A first time buyer is someone who has not owned a principal residence during a three-year time frame before the purchase. For married couples, this applies to both spouses. So if you did not own a home during past three years but your spouse did, then you do not qualify.

Is that all I need to qualify?

No, there are income limits as well.  The full credit is available to married couples who make $150,000.00 or lower and for single taxpayers who make $75,000 or lower.  Above those income limits the credit starts to phase out until it is reduced completely at $170,000 for married couples and $95,000 for individuals.

Is there a deadline for purchasing the home?

Yes. The property, which has to be your principal residence, must be purchased (that means closed on!) before Dec. 1, 2009. For new construction, the purchase/closing date is the date on which you first move into the home.

How do I get the credit?

Talk to your tax preparer for exact details.  But essentially you claim the credit using IRS form 5405 which is the first time home buyer credit form.  This is filed with your 2009 return.

Does this apply to any property?

 It does not apply to vacation properties or investment properties.  This applies to a home that will be your primary residence.

What if I sell the home?

 You can not claim the tax credit if you sell the property before the end of the year.

What if I have special circumstances?

Please refer any more detailed questions to your tax preparer or check out www.IRS.gov for the full details on the first time buyer tax credit!