With all the first time buyers realizing the opportunity that exists if they buy a home this year in time for the $8,000 tax credit I am frequently asked questions about who qualifies as a first time buyer.  I thought this bit from the Q & A section of the National Association of Home Builders website was worth sharing.  

What is the definition of a first-time home buyer? 

The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. 

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.  (my emphasis)

Now is a great time to be a first time buyer.  If you know of anyone who should be taking advantage of the opportunity let me know.

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