Form-5405: First-time Homebuyer Credit


Form-5405    First-Time Homebuyer Credit.  The one and only form you will need to receive your tax credits.  Although this is a very good program for First-time homebuyers you still need to be aware of the Repayment of the Credit (depending on if you purchased in 2008 or in 2009)  the repayment is different and in some cases could be non at all.

 

If you purchase a home in 2009 you must lie in that home for at least 36 months beginning from the purchase date and it is your  main residence.  

Now go figure it would be up to our politician and IRS to come up with this for First-time homebuyers when the current rule for owning a home for less than 2 years as your main residence you are TAXED. 

So let me get this straight.  If I am a first time homebuyer in 2009 and sell my home before the two year period I am taxed twice, If I sell with in two years and three years I am taxed once.  With all this taxing why are we in so much trouble?

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2 Responses

  1. My Nephew purchased a home from his parents.
    It was not their primary home nor are they holding any
    part of the mortgage. Does he qualify?

  2. as long as this was the first home your nephew bought in the last 36 months I don’t believe it matters who it bought it from. As long as you have documentation (HUD-1) that it was purchased then he should be able to qualify for the tax credit. I would talk to your CPA and have all your documents with you jst to verify.

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