A lot of clients have questions about how they can take advantage of the New $8,000 Tax Credit for First-Time Homebuyers. While there is a lot to consider when answering this question, the biggest thing to consider is: What qualifies someone as a first-time buyer? An simple answer would be:
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter.
There is more info on this definition and details on how to take advantage of the credit on this website: www.federalhousingtaxcredit.com/
Call anytime if you have questions...703-400-6757.