I made reference at the end of the year that there was a first time home buyers credit available for people who bought their first house between April 9, 2008 and June 30, 2009.

There are some rules to follow:

1. You must close on the residence with the above mentioned time frame.

2. It does not have to be a house, just a residence like an apartment, condo, townhouse, etc.

3. You will receive a credit of 10% of the purchased house not to exceed $7,500.

4. You will be considered a first time home buyer if you or your spouse has not owned any personal residence during the last three years.

5. You receive the credit in the year of the purchase but then you must repay the credit over the next fifteen years. That means if you received the $7,500 in the year of purchase, your refund will be reduced by $500 beginning in year two and extending out fifteen (15) years. You can take the full 15 years to repay even if you sell the house before it is paid in full.

 
This information is provided in an effort to help you gather and organize the information necessary to file your individual or small business income tax return. While these financial tools are not a substitute for financial advice from a qualified professional, they can be used as a starting point in your decision making process.