The purchase of the home must closed by Nov. 30 to qualify for a credit of up to $8,000, unless Congress extends the deadline or rolls out another credit.
The credit is 10% of the purchase price of the home. The limit is $4,000 for a married person filing a separate return.
Income limits do apply.
For a married couple filing a joint return, the phase-out range starts with modified adjust gross income of $150,000 and goes to $170,000. If the modified adjusted gross income is $170,000 or higher, no first-time homebuyers credit is allowed. For other taxpayers, the phase-out range is $75,000 to $95,000.
The credit must be repaid if, within three years of purchase, the home is no longer the taxpayer’s main home.
The credit is not allowed if the taxpayer owned another main home at any time during the three years prior to the date of purchase. For a married couple filing a joint return, this requirement applies to both spouses.
For details on claiming the credit go to www.irs.gov