Do I qualify for the 2008 first time home buyer credit?

Filling out my taxes using one of the major tax software programs. I got to the part about the $7,500 first time home buyer credit. I filled in the questions and it says I do qualify, but I'm not sure that's correct. Here's my situation:

We moved in 2008. We bought our previous house in October 2001 and then sold it in July 2008. We bought our current house in August 2008.

The tax software defines a first time home buyer as: "A person is considered a first-time homebuyer if he or she (or spouse) has no ownership interest in a principal residence during the 3-yr period before the new home is purchased"

The way I read it, I don't meet the 3 year rule, right?

Or does it mean you can't have purchased another home within the previous 3 years?

The $7,500 would be nice as we are planning a kitchen remodel right now, but obviously I don't want to take it if I don't qualify. That's a can of worms I don't want to open. Thanks.

Mark

Indiana627,

Nice try, your tax software is correct. You can not have owned a home in the last 3 years prior to closing on a home purchased between April 8,2008 and June 30, 2009.
Also your modified adjusted gross income can not exceed $95,000 single filer or $170,000 filing jointly.

The amount of credit is determined on form 5405.

The 10% refundable tax credit (up to $7,500) is really a 15 year interest free loan. You would need to start making payments with your 2010 tax return.

clyde,

I need you to do my taxes! Seriously, you are a steadfast contributor to this forum, even throughout the site's many problems (and they are many).

My hat's off to you, sir. I don't think you get enough recognition for your services.

Dingo

Yep, I agree! If there's a tax question, I wait for clydewolf's brilliant answer.

clydewolf,

Yup after I did some more digging I too realized I was not eligible. Not sure why my software didn't tell me that. In it's defense, it is waiting for another federal update sometime this week.

Thanks guys.

Now, I have to go buy a larger hat.