August 10, 2009 by lourie
Many of you may have heard conflicting information about the deadline is for this tax credit. It is November 30, 2009…you must close the sale before the end of business on this day. Did you know that you don’t have to wait to file your 2009 tax return in 2010 to receive your credit? You can revise your 2008 tax return as soon as you close on your new home and get your tax credit this year!
This is the official overview of the program as found on the Internal Revenue’s website.
First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2008 or 2009. The credit:
Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
Applies only to homes used as a taxpayer’s principal residence.
Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.
Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
The credit is claimed using Form 5405.
