While in office, President Bush signed the Economic Recovery Act of 2008 which provides a $7,500 Homebuyer Tax Credit that will be available for qualified purchases between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
The IRS has issued a new Form 5405, First-Time Homebuyer Credit to incorporate provisions from the recently enacted American Recovery and Reinvestment Act. Under the new law, qualifying taxpayers who buy a home this year before December 1 can claim up to $8,000, or $4,000 for married individuals filing separately, on either their 2008 or 2009 tax returns. Unlike the prior first-time homebuyer tax credit, this is money individuals do not have to pay back. This new Form 5405 provides additional information on who can and cannot claim the credit, income limitations and repayment of the credit. The form and IRS news release can be found here: www.irs.gov
To learn more about this and other matters effecting first time homebuyers please visit me at www.pjgoodmanesq.net.