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FIRST TIME HOMEBUYER CREDIT

You may qualify for a credit up to $8,000 if you are a first time homebuyer. The credit is 10 percent of the purchase price of the home, with a maximum available credit of $8,000 for either a single taxpayer or a married couple filing a joint return. The credit is the smaller of $8,000 or 10% of the purchase price. The full credit is available for homes costing $75,000 or more. The credit is phased out based on your modified adjusted gross income (MAGI). For a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the phase-out range is $75,000 to $95,000.

Who Can Claim The Credit

•          You purchased your main home located in the United States after Apri 8, 2008 and before December 1, 2009

•          You (and your spouse if married) did not own any other main home during the 3-year period on the date of
purchase.   Your main home is the one you live in most of the time.   It can be a house, houseboat,
housetrailer, cooperative apartment, condominium, or other type of residence

Who Can Not Claim The Credit

•          Your income exceeds the phase-out range.   This means joint filers with MAGI of $170,000 and above and
other taxpayers with MAGI of $95,000 and above

•          You buy your home from a close relative. This includes your spouse, parent, grandparent, child or
grandchild

•          You do not use the home as your principal residence

•          You sell your home before the end of the year

•          You are a nonresident alien

•          You owned a principal residence at any time during the three years prior to the date of purchase of your new
home

•       You acquired your home by gift or inheritance
Repayment Of Credit

•          You must repay the credit only if the home ceases to be your main home within the 36 month period
beginning on the purchase date

•          Repayment of the full amount of the credit is due at the time the income tax return for the year the home
ceased to be your principal residence is due.  The full amount of the credit is reflected as additional tax on
that year's tax return

•          If you sell the home to someone who is not related to you, the repayment in the year of sale is limited to
the amount of gain on the sale

IRS CIRCULAR 230 DISCLOSURE: "To ensure compliance with the requirements imposed by the IRS, we inform you that, to the extent this addresses any tax matter, it was not written to be (and may not be) relied upon to (i) avoid tax-related penalties imposed under the Internal Revenue Code, or (ii) promote, market or recommend to another party any transaction or matter addressed herein. In addition, nothing herein is intended to convey an expression of an opinion as to the likelihood a tax position would ultimately prevail if challenged by the IRS. This is intended for general informaiton only.

PLEASE CONSULT YOUR CPA OR TAX ADVISOR FOR HOW THIS CREDIT APPLIES TO YOUR SITUATION