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OFFICIAL MAGAZINE OF THE NATIONAL ASSOCIATION OF REALTORS®

QUIZ: 2009 FIRST-TIME HOME BUYER TAX CREDIT

 In February 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009, which granted an $8,000 tax credit to qualified first-time buyers purchasing a residence that year.

With this credit, you can help first-time home buyers get off the fence and buy a house. Before you start sharing this perk with your clients, though, make sure you know enough about it to answer their questions. Take this quiz to test yourself.

1.To qualify for the 2009 First-Time Home Buyer Tax Credit, a home must be purchased in what time period?





2.In order to qualify for the full $8,000 tax credit, the house must be at least what price?





3.A first-time home buyer is defined as a buyer who hasn't owned a principal residence for how long?





4.What is the income limit for claiming the full tax credit for married taxpayers filing a joint return?





5.What is the income limit for claiming the full tax credit for a single taxpayer?





6.How is a home buyer’s income determined for tax credit eligibility?





7.What is the most significant difference between this tax credit and the one Congress approved in July 2008?





8.What types of homes do not qualify for the tax credit?





9.To claim the tax credit, you will need to:





10.Which of the following statements about the tax credit is TRUE?





11.What if buyers are eligible for an $8,000 credit, but their entire income tax liability for the year is only $5,000?





12.How long do owners have to stay in their homes without having to repay the tax credit?