First-Time Homebuyer Credit Questions and Answers: Basic Information | Valerie Fitzgerald | Beverly Hills Real Estate
By Valerie Fitzgerald, Luxury Real Estate in Beverly Hills & West LA
(Coldwell Banker Residential Brokerage)
Updated Nov. 6, 2009, to note new legislation. The new legislation extends and expands the first-time homebuyer credit allowed by previous Acts. The new law: Extends deadlines for purchasing and closing on a home Authorizes the credit for long-time homeowners buying a replacement principal residence Raises the income limitations for homeowners claiming the credit Q. What is the credit? A. The first-time homebuyer credit is a new tax credit included in the Housing and Economic Recovery Act of 2008. For homes purchased in 2008, the credit operates like an interest-free loan because it must be repaid over a 15-year period. The credit was expanded in 2009 for homes purchased in 2009, increasing the amount of the credit and eliminating the requirement to repay the credit, unless the home cea...
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