The live chat raised more questions than answers for me... Jim stated that eligibility for the tax credit is based on single/married status on the date of purchase. Yet the IRS website indicates that single/married status is based on the last date of the calender year. We settled on a house in 2009 and got married 3 weeks later... so we claim the credit as singles yet indicate married on our return? I used to do my taxes myself, but looks like I'm going to have to get a professional to figure this one out.

I sold my primary residence in May of 2006 (that is when title transferred to the new buyer). I am looking to buy a new home as a "New Buyer" and receive the $8K tax credit. I know I have to be in a contract by April and close in July. My question is what is the trigger for the time frame of a 'new buyer' - contract date or close date? From what I can tell it seems like the close date which means I would be fine but I want to be sure. Thanks!

Grace, that's a really good question. I'll forward it to the Consuming Interests folks in case they get more questions answered by the IRS (or tax experts).

Tracy, are you trying to determine if you'll have been out of your previous home long enough to qualify? You count as a first-time buyer if you haven't owned a primary residence for at least three years, so you're already good to go. But you're right that the IRS considers the closing to be the purchase (or sale) date.

My husband signed a mortgage loan for our daughter, with her name also on the loan. It is a first-time home for her. However, the home was bought from her husbands Grandfather. Two questions: Can my daughter claim this as a "first time home", even though my husbands name is first on the mortgage. And, because it was bought from her husbands grandfather, and not her family, can she claim the tax credit?

I brought a house this year in 2009.I received the 8k tax credit .Will that credit have to be added to my income when filing my 2009 Tax return?

If married and my wife had a house with her mom, and they sold the house in 2007, and I just purchased a house as a my first home in Oct of 2009, do I qualify for any home buyer credit? We lived in the house for over 7 yrs.

Donna, the IRS says a parent co-signing a mortgage doesn't disqualify an otherwise eligible buyer from getting the credit (http://www.irs.gov/newsroom/article/0,,id=206294,00.html). The IRS has also said you cannot take the credit if you buy the house from a "close relative," including "your spouse, parent, grandparent, child or grandchild," but I don't know whether a grandfather-in-law counts. That's a question for a tax expert.

ECB, to the best of my knowledge, you don't have to pay taxes on the credit.

Derek, if I understand your situation correctly, you don't qualify. Your wife's ownership of a home within the past three years prevents either of you from collecting the first-time buyer credit, and you bought too early to be eligible for the $6,500 repeat-buyer credit, which went into effect in November. Sorry.