To get information directly from the IRS, look for Form 5405 (Revised in February 2009). The credit applies only to first time home buyers. The forms states that you must have “purchased your main home located in the United States after April 8, 2008, and before December 1, 2009.” And that “You (and your spouse if married) did not own any other main home during the 3-year period ending on the date of purchase. If you constructed your main home, you are treated as having purchased it on the date you first occupied it.” AND, importantly! “For homes purchased in 2009, you must repay the credit only if the home ceases to be your main home within the 36-month period beginning on the purchase date” says the IRS.
Your main home is described by this IRS Form 5405 (Rev) as “the one you live in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence.”
The credit amounts to up to 10% of the purchase price of the home BUT there are income eligibility limits that you must pay attention to! Check this Form 5405 for details.
According to an article in Forbes.com by CPA Mark A. Luscombe, a buyer can obtain the credit in 2008 if they follow certain guidelines in submitting the proper forms to the IRS. He indicates that if you qualify for this credit, you may be able to claim the credit on your 2008 tax returns by filing for an extension or filing an amendment. Again, you need to discuss this with your own CPA for advice! We are simply making you aware of the possibilities that you have if you are purchasing your first home.
This is an incredible opportunity – like no other ever seen before. And with interest rates holding in the mid 4% range, no first time buyer should be missing this opportunity! SEARCH for your home in the Triangle area in Chapel Hill, Durham, Pittsboro, Hillsborough, Cary or Raleigh on my website, http://idxplus.net-by-design.com/search.mvc/lynnefeiss. Or you can email us with your information and criteria and we will be happy to assist you!