First-Time Home Buyer Credit

Article ID: 59722  

Question
First-Time Home Buyer Credit

Answer

First-Time Home Buyer Credit - You can use this form to make a payment on the credit you took.

Repayment of the Credit.  If you are repaying the credit with your tax return, you are required to file form 5405 only if:

  • You disposed of your home or you ceased using the home as your main home in the tax year, or
  • You purchased your home in 2008, it was destroyed, or you sold it through condemnation or under threat of condemnation, and you did  not purchase a new home within 2 years of the event.

Amount of Credit. 

First Time Homebuyer.  Generally the credit is the smaller of:

  • $8,000 ($4,000 if married filing separately), or
  • 10% of the purchase price of the home.

Long-time resident of the same main home.  Generally, the credit is the smaller of:

  • $6,500 ($3,250 if married filing separately), or
  • 10% of the purchase price of the home.

You may be able to make a payment without using form 5405, check the instructions for Schedule 4 in the 1040 instructions.

 

 

 


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Views: 1493 Created on: Jun 15, 2013