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First Time Home Buyer

 

First Time Home Buyer

 

WHO?

A taxpayer, 18 years of age or older, who has NOT owned a home at ANY time during the past 36 months. 

 

Married Taxpayers: Both spouses must meet the requirement. 

 

Must be at least 18 years of age

Can not be a dependent of another

 

WHEN?

Contract Signed no later than April 30

Purchase Completed no later than June 30 Congress changed the completion date to September 30

 

INCOME LIMITS?

Credit begins to phase out at

Married Filing Jointly $ 225,000

Others $125,000

Credit is gone at:

Married Filing Jointly $245,000

Others $145,000

 

HOME COST

No credit is allowed if the home costs more than $800,000

 

The Seller of the home can NOT be related to the buyer.

 

WARNING—Home must be used as principal residence for three FULL years after purchase

If the home is no longer the taxpayer’s principal residence at ANY time during the 36 months following the date of sale, the credit MUST be repaid. 

 

The only exception is military called to active duty

 

 

This chart is intended to provide a quick list of the First Time Home Buyer Credit. 

 

Do not act solely on this Quick-Sheet.  Seek specific advice from your own tax professional after providing that individual all the necessary facts and information.

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