First Time Homebuyer Credit

The first time home buyer credit (Form 5405) was for taxpayers who purchased homes between April 8, 2008 to September 30, 2010. This credit is not available for those who purchased homes after 2010. Although this credit ended in 2010, those who bought homes before then can still claim the credit. You can claim this credit for federal tax returns from 2008 – 2010.

In 2008, the tax credit was 10 percent of the purchase price of the home up to a limitation of $7,500. Then, the cap went up to $8,000 in 2009. Additionally, if you had purchased a home at least $75,000 – $80,000, you could claim the full tax credit.

Changes:

This credit has changed in 2019. If your home you purchased in 2008 ceased to be your home in 2019, you must notify the IRS. The amount of credit you must repay with your 2019 taxes must be completed with a new 5405 if you:

• disposed of the property in 2019
• ceased to use it as your main home in 2019

This entry was posted on Friday, November 20th, 2020 at 4:21 pm and is filed under Credits. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.