How do new homebuyers qualify for the $7,500 federal tax credit?
This was selected as Best Answer I have included a link to the IRS Q&A about this tax credit. It applies to “main home” purchases in the US by buyers meeting certain income criteria who have not owned a home in the three years prior to their purchase, and only to purchases closed after April 8, 2008 and before July 1, 2009. The credit is up to a maximum of $7500 or 10% of the purchase price of the home, whichever is less, and is further subject to limits based on the buyer’s income. The so-called “credit” is actually more like an interest free loan. It must be repaid with tax returns beginning in the second year after the year in which the home is purchased. Repayment is in equal payments over 15 years, $500 per year if the full $7500 credit is claimed, or when the home is sold or is no longer used as a “main home” under the program’s rules and descriptions. However, if the homebuyer dies the remaining balance does not need to be repaid. As with most tax credits, there are some other m
