Up to $8,000 Home Buyer Tax Credit at a Glance

The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010 to settle on the purchase.

 

But the new law also provides a “long-time resident” credit of up to $6,500.
To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence

*Who is considered to be a first-time homebuyer?

Answers:

• Buyers/Taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase are considered first-time homebuyers.
• Buyers/Taxpayers who have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.

First-Time Homebuyer Credit Questions and Answers:
Basic Information On IRS Website