Applying for the first-time homebuyer credit is very easy. Simply fill out six boxes – at most; and mail in the form.
[Click on the form below to be taken to the electronic .PDF of IRS Form 5405]
Who Can Claim the Credit? According to the form:
In general, you can claim the credit if you are a first-time homebuyer. You are considered a first-time homebuyer if:
• You purchased your main home located in the United States after April 8, 2008, and before December 1, 2009.
• You (and your spouse if married) did not own any other main home during the 3-year period ending on the date of purchase.
So, it sounds as though one needn’t be purchasing his or her first home to be a first-time homebuyer. Also, of note, this IRS form defines “main home” 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.”
Houseboat?
smarten
You are absolutely correct Guy that you DON’T have to be a “first time” homeowner in order to qualify for the first time homeowner tax credit. If for instance you purchased a primary residence more than three years ago; and you’ve been primarily living somewhere else for at least the last three years; then you qualify for the tax credit even though you continue to own was was formerly your principle residence.
But remember, the new purchase must close no later than December 1, 2009.
billddrummer
That knocks me out of consideration because I lost my house in 2007. Now, I’ve been renting since then, but the window is going to close on the credit before I qualify.
And then there’s that pesky foreclosure on my credit report.
Josh
This “tax credit” still had to be paid back at $500 per year, right?
smarten
No Josh. It’s a different credit. You don’t have to pay it back and if you can’t use the entire credit this year [although it’s my understanding you can claim the credit retroactively for 2008 by amending your federal return], you get the balance back in the form of a refund. So the tax credit is really worth something assuming you qualify for the credit and can find something to purchase that makes sense to you.
Paul
Smarten, I believe the IRS instructions require that the tax “credit” be repaid in 15 installments beginning in the first year following reciept of the “credit”.
smarten
Sorry Paul, I don’t think so.
Go to http://www.federalhousingtaxcredit.com/2009/faq.php#8 . You will see that in July of 2008 Congress passed the “first” first time homebuyers’ tax credit which applied to purchases between April 8, 2008-January 1, 2009 [ http://www.federalhousingtaxcredit.com/2009/faq.php#8 ] and UNLIKE the present one did require repayment. The credit for purchases between January 1-December 1, 2009 does not as long as your purchase remains your principle residence for at least three years.
CommercialLender
If you read the instructions attached, you’ll see the 2008 credit must be paid back, but not the ’09 unless in certain circumstances, which are listed.