Form 8859 - District Of Columbia First-Time Homebuyer Credit (Page 2 of 2) in pdf

Form 8859 (2008)

Page

Note. A reasonable method is any method that does

General Instructions

not allocate all or a part of the credit to a co-owner

Section references are to the Internal Revenue Code.

who is not eligible to claim that part of the credit.

Purpose of Form

Line 2

Use Form 8859 to claim the District of Columbia

first-time homebuyer credit.

If you file Form 1040, your modified adjusted gross

income is the amount from Form 1040, line 38,

Who Can Claim the Credit

increased by the total of any:

In general, you can claim the credit if:

Exclusion of income from Puerto Rico, and

You purchased a main home during 2008 in the

District of Columbia, and

Amount from Form 2555, lines 45 and 50; Form

2555-EZ, line 18; and Form 4563, line 15.

You (and your spouse if married) did not own any

other main home in the District of Columbia during the

If you file Form 1040NR, your modified adjusted gross

1-year period ending on the date of purchase.

income is the amount from Form 1040NR, line 36.

If you constructed your main home, you are treated as

Line 9

having purchased it on the date you first occupied it.

If you are claiming the child tax credit, include on this

Your main home is the one you live in most of the

line the amount from line 12 of the line 11 worksheet in

time. It can be a house, houseboat, housetrailer,

Pub. 972.

cooperative apartment, condominium, or other type of

residence.

If you are not claiming the child tax credit,

However, you cannot claim the credit if any of the

TIP

you do not need Pub. 972.

following apply.

You acquired your home from certain related

persons or by gift or inheritance. Related persons

Line 12

include, but are not limited to, your grandparents,

Any unused credit shown on line 12 can be carried

parents, spouse, children, and grandchildren. For

forward until it has been used. You cannot carry the

details, see section 1400C(e)(2).

unused credit back to prior years.

Your modified adjusted gross income (see the

instructions for line 2) is $90,000 or more ($130,000 or

more if married filing jointly).

Paperwork Reduction Act Notice. We ask for the

You previously claimed this credit for a different

information on this form to carry out the Internal

home.

Revenue laws of the United States. You are required to

give us the information. We need it to ensure that you

Amount of the Credit

are complying with these laws and to allow us to figure

Generally, the credit is the smaller of:

and collect the right amount of tax.

$5,000 ($2,500 if married filing separately), or

You are not required to provide the information

The purchase price of the home.

requested on a form that is subject to the Paperwork

Reduction Act unless the form displays a valid OMB

The credit is phased out over a range that:

control number. Books or records relating to a form or

Begins when your modified adjusted gross income

its instructions must be retained as long as their

exceeds $70,000 ($110,000 if married filing jointly), and

contents may become material in the administration of

Ends at $90,000 ($130,000 if married filing jointly).

any Internal Revenue law. Generally, tax returns and

return information are confidential, as required by

Basis Reduction

section 6103.

You must reduce your basis in the home purchased by

The average time and expenses required to complete

the amount of the tentative credit shown on line 6.

and file this form will vary depending on individual

circumstances. For the estimated averages, see the

Specific Instructions

instructions for your income tax return.

If you have suggestions for making this form simpler,

Line 1

we would be happy to hear from you. See the

instructions for your income tax return.

If two or more unmarried individuals buy a main home,

they can allocate the credit among the individual

owners using any reasonable method. The total

amount allocated cannot exceed $5,000 (or the

purchase price if it was less than $5,000).

Form 8859 - District Of Columbia First-Time Homebuyer Credit Page 2

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