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Tax Credit for 1St time HomeBuyers is Under Used and Not Understood

Real Estate Agent with Calcagni Associates Wallingford

First time home buyers are not getting enough information on the Housing and Economic Recovery Act of 2008. Qualified first time home buyers purchasing new or resale properties on or before April 9, 2008 and before July 2009 may apply for this credit thru their income tax filing using the Form 5405. There is no application or approval process required other than fitting the criteria of this form.

The amount available is up to $7500 per couples filing jointly or $3750 if filing separately.

This is really an interest free loan that the tax payer must payback to the government over a period of 15 years by extra tax on subsequent tax filings.  If you are looking for more information concerning the details of this government program access the web site www.irs.govand read the article Tax Credit to Aid First-Time Home-buyers. or contact your tax adviser or real estate professional for direction.