Community | July 23, 2009 | 2 comments

Repaying the $8,000 First Time Home Buyer Tax Credit

source: http://www.thinkglink.com/article/2009/07/22/repaying-the-8000-first-time-home-buyer-tax-credit

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IlyceGlink
If you bought your first home in 2008, you may have qualified for the $7,500 first time home buyer tax credit that has to be repair in equal $500 installments. But if you bought your home in 2009, you don't have to repay the $8,000 first time home buyer tax credit except in certain circumstances.

The IRS has issued form 5405, which you will need to fill out if you're going to take the $8,000 first time home buyer tax credit. But Form 5405's instructions include information on who can take the credit, how much can be taken and under what circumstances the credit must be repaid. Look through the details so you don't run afoul of IRS rules.

This article goes through the rules for knowing when you have to repay the tax credit, so you don't run afoul of IRS rules. It also answers questions like:

Can I Take the First Time Home Buyer Tax Credit?

What Are The Residency Requirements For the Tax Credit?

Who Cannot Claim The $8,000 Tax Credit?

Do I Have to Repay The $8,000 Tax Credit?
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2 comments // Repaying the $8,000 First Time Home Buyer Tax Credit

  • IlyceGlink
    • 0
      IlyceGlink  

    • I have always thought it was wierd that the federal government didn't make the 2008 tax credit identical to the 2009 tax credit - why make the 2009 tax credit $8k and then not require a payback? Or, why not reach back to 2008 and just make all of it a gift as opposed to making those home buyers repay it at a rate of $500/year for 15 years ($7,500 total). It just doesn't make sense. And can you imagine how annoyed those taxpayers are who bought houses and closed on December 31st?

      Thanks for your comment.

    • 2 years ago
  • kjyn69
    • 0
      kjyn69  

    • Seems a bit shady that the IRS doesn't offer the same set of circumstances for those who bought homes in 2008 and those in 2009. Not only are the 2008 home buyers forced to pay back but they get less money than the 2009 home buyers who don't have to pay back. Why not gift the same circumstances.

    • 2 years ago
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