Qualifying as first time home buyer

[halfnote19_IHB]

I was talking to someone and they brought up a interesting point.

Is a first time home buyer someone who has not owned any property in the past 3 years?

Or is it someone that has not on any property in the past 3 years as their primary residence.

Thanks.

 

[ABC123_IHB]

according to the reporter I heard on CNBC, it's the latter. You could have owned a home and sold in 2005 and you would still qualify for all of the rebates.

 

[halfnote19_IHB]

But say you purchased an investment property are you no longer considered a first time home buyer?

 

[Soylent Green Is People_IHB]

Generally speaking, if you've claimed a mortgage interest deduction you are not considered a first time home owner. Every program has unique issues with ownership definitions.

 

[ABC123_IHB]

Here's the link for the California rebate. I'm not a lawyer or a CPA so I don't know what it means.

Tax Credit for New Home Purchase

 

[halfnote19_IHB]

Here's the link for the California rebate. I'm not a lawyer or a CPA so I don't know what it means.

Tax Credit for New Home Purchase

That is for homes that have never been occupied. For that one it does not matter whether you are a first time home buyer or not.

 

[stepping_up_IHB]

Our first property was an investment property, which turned out to not disqualify us as first time buyers. I was pleasantly surprised to learn that our primary residence purchase in '08 qualified for the fed credit (15 year interest free loan). The same guidelines are used for the '09 $8K credit. The gotcha for a number of people is that neither spouse can have owned a primary residence in the last three years.

 

[OCCOBRA_IHB]

I was talking to someone and they brought up a interesting point.

Is a first time home buyer someone who has not owned any property in the past 3 years?

Or is it someone that has not on any property in the past 3 years as their primary residence.

Thanks.

Yes 3 years is about right but do check with each program as it may vary. But it is someone who has not claimed the interest and tax write off on thier taxes for the last 3 years.

 

[new_to_irvine_IHB]

Isn't there income limits for the credits as well? I've heard that if household income is over $150,000 the credit gets smaller, and after $180,000 disapperas at all.

 

[Sunshine_IHB]

Isn't there income limits for the credits as well? I've heard that if household income is over $150,000 the credit gets smaller, and after $180,000 disapperas at all.

Yes, the credit phases out. See IRS Form 5405. The credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between $75,000 and $95,000 (single) and between $150,000 and $170,000 (married).