First Time Indiana Home Buyers, As part of the American Recovery and Reinvestment Act of 2009, the IRS has officially released Form 5405 — better known as the…First-Time Homebuyer Credit Form.

True to tax code standards, the 10-field form is accompanied by 3 pages of instructions, but don’t worry it is not that bad. However, I am not a tax professional, nor do I play one on TV. If you would like a referral for one in your area please let me know.

The IRS form 5405 is a helpful, go-to resource for home buyers with questions about the tax credit for Indiana Home Buyers

For example, the form distinguishes tax consequences for homes bought in 2008 versus 2009, and clearly defines the term “first-time home buyer”.

In addition, Form 5405 highlights the math behind the tax credit. In general, the First-Time Homebuyer Credit is equal to the lesser of:

* $8,000 for homes bought in 2009
* 10 percent of the home’s purchase price

Married couples filing separately are entitled to half of the expected credit, and homes sold within 3 years are subject to a credit repayment in the year the home ceases to be the “main home”.

Form 5405 is a comprehensive reference. However, be sure to check with your accountant or other tax professional for specific questions about your personal returns and how the First-Time Homebuyer Credit may impact your finances. There is no substitute for professional, paid advice.

For more information or to be approved for your First Indiana Home you can apply online or you can download my My Mortgage Planning Questionnaire. If you would like a phone consultation just give me a call at (219)872-8000.

Dave