First-time Homebuyer Tax Credit

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.
  • You can qualify for the credit if you (and your spouse, if married) have not owned a home in the three years prior to a purchase.
  • 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.

To learn how more about the credit or to have Paul amend your 2008 return to claim the credit now (even if you purchased in 2009)–click here and contact Paul.

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