Dear Ms. Lank: My husband says we can get that first-time homebuyer tax credit, $8,000, for any house we buy this year, whether it's new or old. I said I'd double-check. Is that for sure? -- L.

Answer: The tax break isn't quite "this year." You'd better get moving. Whether a new house or an existing one is purchased, the closing must take place before December 1.

These days, careful lenders may require extra time to approve a mortgage loan, and in addition, legal problems sometimes surface and hold up closings. You need to get the whole thing done -- selecting the property, negotiating terms with the seller, arranging financing and arriving at the actual closing, settlement, transfer of title, by November 30, 2009. That's assuming, of course, that you meet the requirements: see the next few questions.

Buying A Vacation Condo

Ms. Lank: My husband bought a home prior to our marriage and most of the paperwork is listed in his name only. If I were to purchase a vacation condo in another state, would I be eligible for the $8,000 first-time buyer incentive? My Realtor has assured us that I am, because I have never owned a home before, but I'm not so sure. Can you please clarify the rules for me? -- J.

Answer: Your Realtor may know a lot about real estate, but he or she shouldn't be giving tax information, particularly wrong information.

You have two strikes against you. The tax credit is available for the purchase of a main residence, not a second home. And if either spouse has owned a house within the past three years, you're not eligible.

You may even have three strikes, for that matter. If your joint income is more than $150,000, the credit is reduced, and it disappears entirely at joint income of more than $170,000. (For single taxpayers, the figures are $75,000 and $95,000.)

Selling To Son

Dear Edith: I am 75 and wish to sell my house to my 50-year-old son. It is appraised for $112,400. I am asking only $65,000. He is frugal and has saved some money. He is a first-time buyer.

The financial advisor on CNN said "People sometimes can get the $8,000 tax credit upfront and use it as part of the down payment. " How is this done? Does everyone get the $8,000? -- G.S.

Answer: First off, no, not everyone gets $8,000. The tax credit is actually for 10 percent of the purchase price, up to a limit of $8,000. If your son qualified, his credit would be $6,500.

The regulations have been changing back and forth, but as of this writing, yes, arrangements can be made to use the money as a down payment.

I'm afraid, though, that your son wouldn't be eligible, because the tax credit isn't available for someone buying from a close family member.

Don't Owe That Much

Ms. Lank: I have always rented but would like to buy a house. A lot of my retirement income is tax-free, one way or another, and last year I didn't even owe $8,000 on my federal tax return. It doesn't seem fair, that if I buy a house this year I couldn't take advantage of the whole amount. -- Via e-mail

Answer: There's good news -- it is indeed fair. If you qualify, and if the house, condo or co-op you buy costs at least $80,000, you'll receive the full amount -- to quote you, "one way or another." If your tax bill doesn't use up all your credit, the government will send you a check for the rest.

Hasn't Owned Lately

Hello. One reader had a question on the $8,000 tax break that ends this year. My question: I am a former homeowner, but for the past six years I have been renting. Now, I am in the process of buying (still negotiating) and was wondering if I qualify for this federal tax credit. If so, when does it have to be repaid? -- L.H.

Answer: If neither you nor your spouse has owned a house during the past three years, you regain your virginity as a first-time buyer. But don't think of that tax break as covering the whole of this year. It applies only to purchases with a final closing date before December 1.

The 2008 tax credit was pretty much an interest-free loan of $7,500, but this year's credit never has to be repaid.