I am sure we are all trying to get as much information on this ever changing topic of First Time Homebuyer Tax Credit. I was fortunate enough to be schooled by Mellody Fairbanks of Wells Fargo Home Mortgage on this topic. These are ever changing and sometimes difficult to follow so please check with your lender to make sure that you are on the right track.
First Time Homebuyer Tax Credit REVISED 101:
These are effective for purchases on or after January 1, 2009 and before December 1, 2009...
Amount of Credit: Maximum credit amount up to $8,000.
Eligible Property: Any single family residence (including coops, condos, townhouses) that will be used as principal residence.
Income Limit: Full amount of credit available for individuals with adjusted gross income of no more than $75,000 single & $150,000 joint.
First Time Homebuyer Only: Purchaser and if applicable purchaser's spouse may not have owned a principal residence in 3 years previous to purchase.
Repayment: No repayment for purchases on or after January 1, 2009 and before December 1, 2009.
Recapture: If home is sold within 3 years of purchase, the entire amount of credit is recaptured on the sale. This only applies to homes purchased in 2009.
The items above are effective for home purchases as of January 1, 2009 to December 1, 2009. As I said earlier, please check with your lender to make sure what course of action is best for your situation.
Also, it may also be easier if your client sends an amended tax return with the deed of trust and form 5405.
I hope this little synopsis is helpful. It is only put out there to show the basics and what you make anticipate and give the current guidelines. Best of luck to all the first time homebuyers out there finding the home they seek.
Thank you again to Mellody Fairbanks of Wells Fargo Home Mortgage for all the great information.