You may be able to claim a one-time tax credit of up to $7,500 ($3,750 if married filing separately), or 10% of the purchase price of your home (whichever is smaller), if you are a first-time homebuyer. You (and your spouse if married) are considered a first-time homebuyer if:
- You purchased your main home in the United States after April 9, 2008, and before July 1, 2009, and
- You did not own any other main home during the 3-year period ending on the date of purchase.
If you constructed your main home, you are treated as having purchased it on the date you first occupied the home.
Generally, the credit operates much like an interest free loan and must be repaid over a 15-year period. You cannot claim the credit if:
- Your modified adjusted gross income is $95,000 or more ($170,000 or more if married filing jointly).
- You are eligible to claim the District of Columbia first-time homebuyer credit for 2008 or any prior year. See Form 8859.
- Your home financing comes from tax-exempt mortgage revenue bonds.
- You are a nonresident alien.
- Your home is located outside the United States.
- You sell the home, or it ceases to be your main home, before the end of 2008.
- You acquired your home by gift or inheritance.
- You acquired your home from a related person.
For more information and to claim the credit see, Form 5405, First-Time Homebuyer Credit.