Definition of a "First-Time Homebuyer" for IRS purposes?

Question

Hello, I currently own a home in Canada. I am an American Citizen and will be moving back to the U.S. in Spring 2009. Am I eligible for the new First Time Home Buyer Credit? Specifically, does owning a residence in a foreign country within the last three years count the same as if I owned a residence in the U.S.? Does this make any sense?

Answer 1

The NEW "First-Time Homebuyer" "credit" applies if you do not, and have not, owned a home which is your principal residence in the preceding 3 years.  It doesn't matter whether it's in a foreign country.

This may not answer your question.

Answer 2

There doesn't appear to be anything in the law that states that the home owned must be in the US so if you currently own your home in a foreign country you would appear to be ineligible.

The following site has information on the program.  Bear in mind that it is a commercial site and the information on it is NOT official information from the IRS.  It appears to be correct, however the IRS will administer the program and will have the final say on how the program will operate.  http://www.federalhousingtaxcredit.com