… are now available for first-time home buyers at IRS.gov. Tis’ the tax season! To download form number 5405 click here.
This, of course, is all part of President Barack Obama’s $789 billion American Recovery and Reinvestment Act of 2009, which is a recently-approved blockbuster stimulus initiative that is expected to boost employment and jumpstart the national economy.
Providing people with financial incentives or “tax breaks” to purchase real estate is a large piece of the plan.
Therefore, the new bill provides a first-time home buyer with an $8,000 maximum tax credit (or 10 percent of the purchase price) on a purchase made before Dec. 1, 2009. It can be claimed on a 2008 (due this April) or 2009 (due next April) federal tax return and does not need to be repaid if the person resides in the property for more than three years.
In addition, first-time homebuyers who bought in 2008 (April 8 through Dec. 31) have been rolled into the equation. However, the maximum credit is $7,500 and must be paid back over a 15-year period.
For more on the $8,000 home buyer tax credit click here. Be sure to contact your personal accountant or the individual who files your taxes for additional information on how to take advantage of this limited-time money-saving offer.
[...] So be sure you know the requirements before filling out form number 5405! [...]