First-time Homebuyer (and Houseboat Buyer) Credit for 2009 explained

Published online: Apr 13, 2009 News Rod Curran
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There is a lot of confusion regarding the 2009 First-Time Homebuyer Credit. First of all is the name - First-Time Homebuyer Credit. You are considered a first-time homebuyer if:

 You purchased your main home located in the United States after Dec. 31, 2008 and before Dec. 1, 2009.

 You (and your spouse if married) did not own any other main home during the 3-year period ending on the date of purchase.

If you constructed your main home, you are treated as having purchased it on the date you first occupied it.

Your main home is the one you live in most of the time. It can be a house, houseboat, house trailer, cooperative apartment, condominium or other type of residence.

Generally, the credit is the smaller of:

 $8,000 but only half that amount if married filing separately, or

 10 percent of the purchase price of the home

This is a refundable credit. That means you can get up to $8,000 back in your pocket. More good news is that after you close on your home you can amend your 2008 taxes and get your money back this year. Now is a great time to buy a new home especially if you have not had a financial interest in one in the last three years. Not only do you get the First-Time Homebuyers Credit, but interest rates are lower than they have ever been.

There are some restrictions:

1. Your modified adjusted gross income is $95,000 (170,000 or more if married filing jointly)

2. You are a non-resident alien.

3. Your home is located outside the United States.

4. You acquired your home by gift or inheritance.

5. You acquired your home from a related person.

A related person includes:

a. Your spouse, parent, grandparent etc.

To learn more about this amazing tax credit I would advise you to contact your personal accountant and your local Real Estate Professional. Don't miss out on this fantastic opportunity to take advantage of being a home owner this year. Remember this credit expires on Dec. 1, 2009.

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