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First-Time Homebuyer Credit – Specific Rules

To claim this tax benefit, which is worth 10% of the price of the house, up to a maximum of $ 8,000, you must have closed the house and you have been transferred the title between January 1, 2009 and April 30, 2010. You can also credit on purchased properties until 30 September 2010, as long as you had signed a valid sales contract on or before 30 April 2010.

 

Residency Restrictions

Residency Restrictions

To avoid having to repay the credit, you must live at home three years (36 months) after the actual closing date. When you build the house, your residence starts on the day you moved. You cannot use it as a holiday home or rent the entire house to someone else (although renting a room in the house is fine).

 

When do I have to repay the credit?

When do I have to repay the credit?

If you have received the $ 8,000 tax credit for a house purchased in 2009 or 2010, the rules are a little different. You do not have to repay the credit at all if you lived there as your main residence for three years from the date you closed the house. If you leave or stop using the house as your main residence before three years have passed, you must repay the full credit of your tax return for the year that you lived there. There are a few exceptions to this rule, listed below.

  • If you are a serviceman, iOI, or a foreign servant, and now you have to live in a government building or you have been reassigned to a service more than 80 kilometers away from your home.
  • If your house is seriously damaged and you cannot live in it. (This must be involuntary damage – no hijinks!) You must, however, buy a new house within two years.
  • If the homeowner dies within 36 months of purchase. (If your spouse lives there, he or she must live there until the 36-month period has elapsed, or pay back half of the credit.)
  • If the house is part of a divorce agreement, the person receiving the house must live there for 36 months from the date of purchase, or that spouse will have to repay the credit even if the other spouse initially received the credit.
  • If you sell the house to someone who is not affiliated with you, you must repay the tax credit up to the amount that you received when selling the house. If you have taken a loss by selling the house, you do not have to repay the credit.

 

Repeat the 2009 and 2010 homebuyer tax credit

tax credit

There is also good news for returning home buyers! For homes purchased between November 6, 2009 and April 30, 2010, or purchased before September 30, 2010 if a contract existed before April 30, 2010, many people who are not first-time home buyers may be eligible for a tax reduction. The credit is worth 10% of the price of the house, up to a maximum benefit of $ 6,500. It cannot be assumed when purchasing a home worth more than $ 800,000.

 

Residency Test

Residency Test

If you had already lived and lived in the same house five of the eight years before you bought the new house, you may be eligible for a tax credit. You can also withdraw this credit when you build a new house; you would use your iago purchase date to find out if you had been in the previous house for five of the previous eight years.

 

Income limits (on adjusted gross income)

Income limits (on adjusted gross income)

  • Married filing separately: limit of $ 225,000 for full credit, completely phased out with $ 245,000
  • All others: limit of $ 125,000 for full credit, completely phased out with $ 145,000

Although the tax credit cannot be taken for the first time by someone who is not a US citizen, the tax credit of the returning homeowner can be accepted by non-citizens, as long as they are not non-residents, take the residence test, and are within the income limits.

If you purchase a house together with a spouse, both spouses must pass the residency test described above. If you buy a house with someone who is not your spouse, you can either claim the credit and distribute it among yourself if you pass the residue test and income limits. You also do not have to sell your previous home to receive this credit; As long as you now use the new house as your main residence, you can rent out the old house.

 

When do I have to repay the tax credit?

When do I have to repay the tax credit?

You must live in the new house for at least three years as your principal residence to prevent you from repaying the credit. If you relocate for this, you may have to repay the credit. The rules are the same as for the credit mentioned above for the first time that a homebuyer was taken out in 2009-2010.

 

Special exceptions

Special exceptions

If you were stationed outside the United States for 90 days or more between January 1, 2009 and April 30, 2010, you will in fact still be eligible for this credit (from April 2011). Members of the army, the foreign service or the iagoight service can still get the first or repeated homebuyer tax credit if they buy a house before April 30, 2011 and you have to close the house and get the title before June 30, 2011. The rules are the same as for the credit for the first time that a homebuyer works in 2009-2010 and the credit of the returning homebuyer as mentioned above.