First Time Home Buyer Credit
A first time home buyer is that person who has not owned a home for the past three years preceding the purchase of a home. This applies to married couples as well. This is to say that if your spouse has owned a home previously in the past three years, then you do not qualify as a first-time home buyer.
For such people who are looking for credit facilities, there is need to understand that one way through which this credit can be obtained is through tax. For one to qualify for the tax credit, the purchasing of the home must be done between January 2009 and December 2009. The purchase becomes complete on the closing date and when the transfer has been made to the buyer.
The amount for which a first time home buyer can qualify is simply 10% of the value of the home to be bought and it does not exceed $8000. There are also some other criteria that are put into consideration to determine whether one will be approved for the tax income. This is the income level. Single persons must not be earning more than $75,000 while the limit for married persons is $150,000.
To apply for the tax credit, you should fill out an IRS form 5405. The amount you qualify for will then be determined and you can claim for it on line 69, which is part and parcel of the tax form. This is the only form you will be required to fill and as you do so, you must be sure that the purchase is complete, otherwise you will be disqualified.
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Santa Clarita Home Buyers: Use IRS Form 5405 To Get Your Tax Credit – Episode 22
