Modified homebuyer credit may make now the best time for pastors to make a move.
by Richard R. Hammar
Under prior law, a taxpayer who was a first-time homebuyer was allowed a refundable tax credit equal to the lesser of $7,500 or 10 percent of the purchase price of a principal residence. The credit was allowed for qualifying home purchases on or after April 9, 2008 and before July 1, 2009 (without regard to whether there was a binding contract to purchase prior to April 9, 2008). The credit phased out for taxpayers with modified adjusted gross income between $75,000 and $95,000 ($150,000 and $170,000 for joint filers) for the year of purchase. A taxpayer is considered a first-time homebuyer if he or she had no ownership interest in a principal residence in the United States during the three-year period prior to the purchase of the home to which the credit applies.
The credit was recaptured ...