Loading the player...

DEFINITION of 'Longtime Homebuyer Tax Credit'

The Longtime Homebuyer Tax Credit was a federal income tax credit available to homebuyers who had owned and lived in the same principal residence for five of the last eight years before the purchase of their next home. In order to qualify for the credit, most homebuyers would have had to sign a binding sales contract for the home before April 30, 2010 and close on the purchase before June 30, 2010.

BREAKING DOWN 'Longtime Homebuyer Tax Credit'

The homebuyer tax credits were designed to bring new buyers to the housing market and increase demand in order to stabilize falling housing prices. By most accounts, the credits were successful in increasing home sales and median prices. Critics of the tax credit believe that this subsidy artificially inflates home prices and that it acts as only a temporary support for falling prices.

RELATED TERMS
  1. Form 5405: First-Time Homebuyer ...

    A tax form distributed by the Internal Revenue Service (IRS) ...
  2. First-Time Homebuyer Tax Credit

    A refundable tax credit made available to Americans purchasing ...
  3. Tax Break

    A tax break is a savings on a taxpayer's liability. A tax break ...
  4. Settlement Statement

    A statement that summarizes all the fees and charges that both ...
  5. Tax Credit

    An amount of money that a taxpayer is able to subtract from the ...
  6. American Opportunity Tax Credit

    A tax credit that enabled more student and parents to pay for ...
Related Articles
  1. Taxes

    The Truth About The First-Time Homebuyer Tax Credit

    The $8,000 tax credit might be the push you need to buy your first house, but there are some things you need to know first.
  2. Investing

    Credits For First-Time Homebuyers

    Tax credits, grants, and other options can help first-time homebuyers afford their purchase. They just need to know where to look.
  3. Investing

    Special Benefits for First-Time Homebuyers

    To encourage Americans to buy their first homes, the government offers credits and tax breaks. Here's the lowdown on who can qualify for each benefit.
  4. Insurance

    5 Mistakes to Avoid When Buying a New Home

    Understand five specific mistakes to avoid when buying a new home.
  5. Investing

    Can I Afford a House in 2016?

    Start the homebuying process in 2016 before mortgage rates increase. More sellers are expected to list their homes, resulting in less competition for buyers.
  6. Taxes

    Give Your Taxes Some Credit

    A few tax credits can greatly increase the amount of money you get back on your return.
  7. Taxes

    5 Tax Credits You Shouldn't Miss

    If you're not taking advantage of these deductions, you could be missing out on tax savings.
  8. Personal Finance

    Millennials Guide: Buying Your First House

    Millennial homebuyers need to research a lot of things, such as how much to pay, down payments, PMI, FHA loans and special programs for first-time buyers.
  9. Investing

    Buying A Home: Brand New Vs. Fixer-Upper

    We check out the advantages of each of these options, and look at the issues involved with a fixer-upper.
  10. Investing

    How to Get A No-Down-Payment Mortgage

    There are many programs offering no-down-payment home loans to qualified homebuyers.
RELATED FAQS
  1. Is it possible to have a credit limit that's too high?

    Avoid these pitfalls when working with high credit limits, and learn how to increase your credit score by increasing your ... Read Answer >>
  2. How does the American Housing Rescue and Foreclosure Prevention Act of 2008 affect ...

    The passage of the American Housing Rescue and Foreclosure Prevention Act of 2008 at the end of July 2008 made about $15 ... Read Answer >>
  3. My wife and I both converted our Traditional IRAs to Roth IRAs in Dec 1998 and have ...

    You and your spouse each qualify for a penalty-free distribution of up to $10,000 for the purchase, acquisition or construction ... Read Answer >>
  4. What is the difference between bad credit and no credit?

    The answer to this question will depend on what information (if any) is found on your credit report, such as any bankruptcy ... Read Answer >>
  5. What is the difference between a write-off and a deduction?

    Understand the differences between a tax write-off and a tax deduction. Learn how each one works to reduce income taxes and ... Read Answer >>
  6. What are some examples of a good time to take out a home equity line of credit (HELOC)?

    Determine if a home equity line of credit (HELOC) is right for you by looking into the most common and ideal uses of these ... Read Answer >>
Hot Definitions
  1. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  2. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  3. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  4. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  5. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  6. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
Trading Center