First Time Tax Credit May Have To Be Repaid

Did you know the heavily touted $8000 tax credit for first time home buyers may have to be repaid? Generally, there isn’t a requirement to pay back the credit if the property purchased in 2009 is a PRINCIPAL RESIDENCE. Buyers WILL HAVE TO REPAY THE CREDIT IN FULL if the home they purchase fails to remain a principal residence anytime within 36 months from the date of purchase.

Repayment of the full amount of the credit will be due for the tax year covering the time at which the property was no longer used as a primary residence. The full amount of the credit will be reflected as additional tax on that year’s tax return. IRS Form 5405 and its instructions will be revised for tax year 2009 to include information about repayment of the credit. It’s important for home buyers to consult their tax advisor for more information on the impact this may have on them.

 

• Rate this Post!

  Select Your Rating:

  • 5 Stars (Excellent!)
  • 4 Stars
  • 3 Stars
  • 2 Stars
  • 1 Stars (Poor)

• Share this Post

  Share With A Friend:

  Your Name Your Email

  Friend's Name Friend's Email

  Optional Message

  Send

• Print
• Social Bookmarking

  Add to Bookmarks: