First-time Homebuyer’s Credit

June 26, 2009

The 2008 Housing Act adds a new refundable tax credit for “first-time homebuyers”.

- Credit is the lesser of $7,500 ($3,750 for MFS) or 10% of the home’s purchase price.
- Available for principle residences purchased after April 8, 2008, and before December 1, 2009. (If taxpayer constructs the home, he/she must first occupy between these dates.)
- The credit is computed on Form 5405 and carried to line 69 of Form 1040.

A “first-time homebuyer” is an individual who had no present ownership interest in a principal residence during the three-year period ending in the date of the purchase of the principal residence to which the credit applies. If the individual is married, neither the individual nor his/her spouse may have had present ownership interest in a principal residence during that three-year period.

For more information about the 2008 First-time Homebuyer’s credit, consult your tax adviser. Additionally, President Obama’s Stimulus Bill creates and $8,000 credit for 2009.

June 26, 2009 | Filed Under Real Estate

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