First Time Home Buyer Tax Credit

If you purchased a new home in 2008 or plan to do so in 2009, you’ll want to know about the first time home buyer tax credits available.

2008 Home Purchases

Buyers can get a $7,500 First Time Home Buyer Tax Credit. The credit is 10% of the purchase price of your home, capped at $7,500. The credit is a 0% interest, 15 year loan from the government and it must be paid back beginning 2 years later.

2009 Home Purchases

Buyers can get a $8,000 First Time Home Buyer Tax Credit for 2009 home purchases. It applies to homes purchased between January 1, 2009 through November 30, 2009. The credit, which is refundable, is $8,000 or 10% of the home’s value, whichever is less.

You can file for either the 2008 or 2009 first time home buyer tax credit on your 2008 taxes using Form 5405.

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