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Who is eligible to claim the home buyer tax credit?
First-time home buyers purchasing a home may be eligible for the tax credit. To qualify for the tax credit, a home purchase must close on or after January 01, 2009 and before December 01, 2009. The purchase date is the day when closing of escrow occurs.

What is the definition of a first-time home buyer?
The new law defines “first-time home buyer” as a buyer who hasn’t owned a home used as a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the ownership history of both the home buyer and the spouse of the homebuyer.

For example, if you haven’t owned a home in the past three years but your spouse has owned a principal residence, neither you…

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* The tax credit is for the amount of $8,000 on homes closing between 12/31/09 and 11/30/09

*  The tax credit is available to all purchases of any first home used as a primary residence for three full years.

*  Buyers must occupy the home for 3 years as their principle residence or they will have to pay it back.

*  Purchases of homes by investors are ineligible.

*  Sunsets the previous $7,500 Housing Tax credit on 01/01/09

* Income limits apply: AGI of $75,000 (SINGLE) and $150,000 (Married, joint filers) and phases out after $90,000 (single)

*  The credit is not repayable unless you sell within three years (The $7500 credit previously in place was at a zero interest rate but had to be paid back over…