Obama unveiled a Economic Stimulus Package in order to revive the economy. One of the key provisions in 2009 Obama Economic Stimulus plan is the housing stimulus bill. This housing stimulus, also referred to as $8000 first time home buyer tax credit is a refundable tax credit given to qualifying first time home buyers who purchase homes between January 1 2009 and December 1 2009. Read my detailed post on 8000 housing tax credit- details explained for a gentle introduction to this housing tax rebate. I am writing this post in response to the 100+ comments i recieved for on the above mentioned post on federal 8000 home credit, especially to clarify some of the points for First time home buyers who planning to make a joint purchase. Here are the key points.
- In order to qualify for the $8000 first time home buyer tax credit or housing tax credit you must be a first time home buyer. The defintiion of first time home buyer is one who has not owned a Principal Residence in the past three years. Principal residence is a home in which you actually stay in. Thus if you have owned a home and have rented it for the past three years or more, or it was your vaction home, then you still may qualify for the $8000 first time home buyer tax credit.
- If you are married, then both you and your spouse must be first time home buyers. This is irrespective of whether you are planning a joint purchase with your spouse or not. Read more about $8000 first time home buyer tax credit for married people to learn more if you are married or are planning to get married in 2009.
- If you are unmarried and making a joint purchase, then it is ok if one of the partners or home buyers qualifies for the 8000 housing tax credit. In this case, after making the joint purchase the 8000 home buyer tax credit may be allocated to any one (but not more than one) of the qualifying first time home buyer involved in the joint purchase.