Big Break For First Time Homebuyers!

By
Services for Real Estate Pros with The Law Office of Peter J. Goodman

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.

 

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  1. Vanessa Hackleman 03/09/2009 04:49 AM
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Rainmaker
92,660
Pamela STETSON
Berkshire Hathaway HomeServices Abbott Realtors - Mahwah, NJ
I would love to help you buy or sell your home!

Actually President Obama signed it into LAW as part of the American Recovery and Reinvestment Act of 2009 (and it was not issued by the IRS). It is an act of congress that was signed on Feb 17, 2009 as part of the stimuls bill. The suggested credit was supposed to be $15,000 and was chisled back to $8,000 by members of the Republican party. It is interesting to note that no republican member of the house voted for the bill. Regardless of party lines  --- this is a great opportunity for first time home buyers to take a direct tax benefit off their taxes in addition to low interest rates. For updtaed information --- see www.whitehouse.org for continuous updates or www.recovery.org .

Mar 09, 2009 04:35 AM #1
Rainer
3,783
Peter Goodman
The Law Office of Peter J. Goodman - Melville, NY

Actually Pamela,

I stated the IRS had issued a new form - not that they enacted the bill. But thank you for the interesting information.

Mar 09, 2009 04:50 AM #2
Rainer
16,707
Eric Walls
Eric M Walls - Elmira, NY

I think that it's great over all for this business.  We need to take everything in stride and make it work for us.  I wish everyone continued success and if you ever have any financing questions , please ask.

Eric

Mar 11, 2009 02:31 AM #3
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Rainer
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Peter Goodman

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