Vacation Home - $8,000 First Time Homebuyer Credit

QUESTION: Could a vacation home qualify for the tax credit?

CRIBBIN REALTY'S ANSWER: Yes, as long as you can prove that it hasn't been used as a primary residence for the previous three years.

QUESTION: Is a tax credit the same as a tax deduction?

CRIBBIN REALTY'S ANSWER: No. a tax credit is a dollar-for-dollar reduction in the amount of tax the taxpayer owes.

This tax credit is equal to 10 percent of the purchase price of the home, up to a maximum of $8,000.