Gary Olszewski & Company, PC Certified Public Accountants • Business and Tax Advisors   First-Time Homebuyer Credit Summary Gary Olszewski, CPA May 26, 2009 Homes acquired 4/8/08 - 12/1/09 (constructed homes are date occupied) First-Time defined as "having no ownership interest in a principal residence during the 3 year period ending on the date of purchase". Must be "principal" residence - Where you lived for most of the year, and based on all facts and circumstances. It can be a house, a houseboat, housetrailer, cooperative apartment, condominium, or other type of residence. Credit is fully refundable in 2008 and 2009. This means you get refund even you have no income tax. 2008 Purchases §            Limited to smaller of $7,500 or 10% of purchase price. §            Credit phased out for income $75,000 to $95,000 single, and $150,000 to $170,000 married. §            Credit really is a loan. Must be repaid over 15 years §            Subject to recapture if stop using as principal residence. Exceptions for death, divorce, involuntary conversion, and limited to gain. 2009 Purchases §            Limited to smaller of $8,000 or 10% of purchase price §            Credit phased out for income $75,000 to $95,000 single, and $150,000 to $170,000 married. §            Not a loan, a true credit, which is dollar for dollar offset to tax, even if no tax. §            Subject to full recapture during first 36 months only. Same exceptions as 2008 purchases. Choices on Claiming the Credit §            Can claim 2009 purchases on either 2008 or 2009 tax returns. §            May amend if necessary. §            Income levels in different years could impact decision.         94 North Elm Street, Suite 209, Westfield, MA 01085 Tel: 413-562-5709 • Fax 413-562-5983 • www.QualityCPA.com   The information contained herein is for general informational purposes only. You should consult with a professional for any specific questions or issues you may have.