First-Time Homebuyer Tax Credit
March 6, 2009 by Jamie Miller · Leave a Comment
Couple’s income
$165,000
Income limit
150,000
Excess income
$15,000
The excess income amount ($15,000 in this example) is used to form a fraction. The numerator of the fraction is the excess income amount ($15,000). The denominator is $20,000 (specified by the statute).
In this example, the disallowed portion of the credit is 75% of $8000, or $6000
($15,000/$20,000 = 75% x $8000 = [...]
