Finance & Enjoyment Blog

Qualifying For The First Time Homebuyers' Credit

The recently announced first time home buyers' credit can be a tremendous benefit to those who qualify, but the rules and regulations that govern this credit are very specific and not known by many people. In order to claim this credit for a house bought in 2011, you must be a first time home buyer or a long time resident of the same main home.

A first time home buyer is defined as someone who meets all of the following rules:

  1. You or your spouse is a member of the uniformed services, foreign services, or an intelligence agency.
  2. You purchased your main home in 2011.
  3. You and your spouse did not own a home over a three year period ending on the day of the purchase.

For long time residents, the rules are almost the same as first time buyers with expected differences.

  1. You or your spouse is a member of the uniformed services, foreign services, or an intelligence agency.
  2. Over an eight year period from the date you buy the home, you must live in one residence for five straight years.
  3. You purchased your new main home in the United States from December 31, 2010 through May 1, 2011 or April 30, 2011 through July 1, 2011. Also, if the house was bought by July 1, 2011, the contract must have signed by May 1, 2011.

Also, the purchase price of the home cannot exceed $800,000. Your adjusted gross income cannot exceed 145,000 if single and $245,000 if married filing jointly. Houses received as gifts or bought from related parties are excluded. There are several other rules that can restrict this credit, but they are so nuanced and particular that almost all people will not qualify for them. If you think you qualify but want to make sure, please feel free to contact us today!


Posted in Your Financial House »



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