First Time Homebuyer Tax Credit Eligibility - NJ, Hoboken

There is still much confusion about the First-Time Homebuyer Tax Credit, so I decided to pitch in and help clarify the issue.

The name would suggest only people who nevere owned a home would be eligible. Well, not quite. From the IRS standpoint anyone who has not owned a principal residence property (home) in the last 3 years is considered a first time home-buyer.

If you are buying a home jointly, with someone other than a married spouse, it is enough that one of the individuals has not owned a principal residence property in the last 3 years, in which case the tax credit is entirely attributed to that person.

If on the other-hand you are buying jointly with your husband/wife, you are eligble for the tax credit only if neither owned a principal residence property. In the case you do qualify the tax credit will split between the two spouses.

Also, to be eligible you have to have closed on the property before the 1st of December 2009.

To find out about Terms of the First-Time Home-Buyer Tax Credit, please refer to my other blog entry. Or visit me at my site and contact me for additional information.

Additional Resources:

IRS Intro Video: English | Spanish | American Sign Language

Explanation Video: English