Definition: According to the IRS, you qualify as a first-time home buyer:
"if you had no present interest in a main home during the 2-year period ending on the date of acquisition of the home which the distribution is being used to buy, build, or rebuild. If you are married, your spouse must also meet this no-ownership requirement."Below are links to information on the temporary first time home buyer federal tax credit:
- IRS Page On First Time Home Buyer Tax Credit
- Federal Housing Tax Credit Sponsored by the National Association of Home Builders
Alternate Spellings: first time homebuyer, first-time home buyer
Examples: Normally IRA withdrawals prior to your age 59 1/2 are subject to a 10% penalty tax, but if you qualify as a first time home buyer, you may be able to withdraw up to $10,000 from your IRA and pay no penalty tax if the funds are used to buy, build or rebuild a home.