Taking the First-Time Home buyer Credit

Below is an excerpt from an article written by Joshua Levine of Levine Lawyers. The entire article can be seen here. Joshua can be contacted directly at joshua@levinelawyers.com.

Home buyers could be eligible for a tax break, essentially an interest-free loan worth as much as $7,500, under The Housing Assistance Tax Act of 2008.

* Known as the first-time home buyer credit, the tax break is available if you purchase a home on or after April 9, 2008 and before July 1, 2009, and meet certain income and other requirements.
* The credit is equal to 10 percent of the home purchase price, up to a limit of $7,500.
* Unlike other tax credits, this one must be paid back to the government, over a 15-year period.

Who is considered a "first-time" home buyer?

Any taxpayer who has never owned a home as a principal residence. However, you could qualify if you’ve owned a home before, but not as your principal residence during the three years prior to the purchase. Married couples cannot qualify for the credit unless both spouses meet the three-year rule.

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