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How much do you know?
Take NAR’s 2009 First-Time Home Buyer Tax Credit Quiz
 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, then turn to page 10 for answers and explanations.
1. To qualify for the 2009 First-Time Home Buyer Tax Credit, a home must be purchased in what time period?
[ ] Jan. 15, 2009-Dec. 23, 2009
[ ] Jan. 1, 2009-Dec. 1, 2009
[ ] Jan. 1, 2009-Dec. 31, 2009
[ ] April 15, 2009-Dec. 31, 2009
2. In order to qualify for the full $8,000 tax credit, the house must be at least what price?
[ ] $80,000
[ ] $50,000
[ ] $250,000
[ ] $150,000
3. A first-time home buyer is defined as a buyer who hasn't owned a principal residence for how long?
[ ] Never owned a home
[ ] 3 years prior to the purchase
[ ] 10 years prior to the purchase
[ ] 50 years prior to the purchase
4. What is the income limit for claiming the full tax credit for married taxpayers filing a joint return?
[ ] $50,000
[ ] $200,000
[ ] $100,000
[ ] $150,000
5. What is the income limit for claiming the full tax credit for a single taxpayer?
[ ] $75,000
[ ] $50,000
[ ] $100,000
[ ] $125,000
6. How is a home buyer’s income determined for tax credit eligibility?
[ ] Wages and/or salaries only
[ ] Wages, salaries and interest
[ ] Wages, salaries, interest and dividends
[ ] Adjusted Gross Income (AGI)
7. What is the most significant difference between this tax credit and the one Congress approved in July 2008?
[ ] The repayment feature is eliminated.
[ ] The credit is $5,000 higher than in 2008.
[ ] All buyers are eligible.
[ ] There was no tax credit in 2008 for home buyers.
8. What types of homes do not qualify for the tax credit?
[ ] Mobile homes
[ ] Townhouses
[ ] Houseboats
[ ] They all qualify
9. To claim the tax credit, you will need to:
[ ] Get pre-approved.
[ ] Claim it on your federal income tax return.
[ ] Talk to your mortgage broker.
[ ] Hire a lawyer.
10. Which of the following statements about the tax credit is TRUE?
[ ] The credit can be used as part of a buyer's down payment.
[ ] Vacation homes and rental properties are not eligible.
[ ] Properties outside of the U.S. also are eligible.
[ ] Homes purchased in 2008 can still take advantage of this as well.
11. What if buyers are eligible for an $8,000 credit, but their entire income tax liability for the year is only $5,000?
[ ] They lose the $3,000 extra benefit.
[ ] They can claim it in 2010.
[ ] They'll get a refund for $3,000.
[ ] They can't claim it at all then.
12. How long do owners have to stay in their homes without having to repay the tax credit?
[ ] 3 years
[ ] 10 years
[ ] 5 years
[ ] 1 year
Click Here for answers and explanations.
Reprinted from REALTOR® Magazine Online April 2009 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2009. All rights reserved.
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