| Q. Is the IRS currently
accepting e-filed returns that claim the new
$8,000 homebuyer credit in/for the 2008 tax
year? A. Yes.
Taxpayers can file
Form 5405, First Time Homebuyer Credit,
electronically for home purchases in 2008 to
claim the first-time homebuyer credit. IRS began
processing these returns electronically on March
30, 2009.
Q.I bought my home in 2009
(early) and filed my 2008 tax return claiming
the $7,500 first-time homebuyer credit that has
to be repaid. Now the expanded law provides for
an $8,000 credit that doesn’t have to be repaid.
What do I need to do to get the $8,000 credit
that doesn’t have to be paid back?
A. You can file an amended
return.
Q. If I purchase a home in
June 2009, and have already filed my 2008 tax
return, can I amend my 2008 return or will I
have to claim it on my 2009 return?
A. You can either file an
amended return to claim it on your 2008 return
or claim it on your 2009 return.
Q. I am in the process of
buying a home. I expect to close the deal before
December 1, 2009. Can I claim the first-time
homebuyer credit now? That would allow me to use
the refund for a down payment.
A. No. You may not claim the
credit in anticipation of a purchase that has
yet to happen. Until you have finalized the
purchase of your home, which for most purchasers
occurs at the time of the closing, you do not
qualify for the credit. IRS
news release 2009-27, First-Time Homebuyers
Have Several Options to Maximize New Tax Credit,
contains details for filing options if the home
is purchased after April 15, 2009.
Q: When must I pay
back the credit for the home I purchased in
2009?
A: Generally, there is no
requirement to pay back the credit for a
principal residence purchased in 2009. The
obligation to repay the credit on a home
purchased in 2009 arises only if the home ceases
to be your principal residence within 36 months
from the date of purchase. The full amount of
the credit received becomes due on the return
for the year the home ceased being your
principal residence.
Q. If I claim the
first-time homebuyer credit for a purchase in
2009 and stop using the property as my principal
residence before the 36 month period expires
after I purchase, how is the credit repaid and
how long would I have to repay it?
A. If, within 36 months of the
date of purchase, the property is no longer used
as your principal residence, you are required to
repay the credit. Repayment of the full amount
of the credit is due at that time the income tax
return for the year the home ceased to be your
principal residence is due. The full amount of
the credit is reflected as additional tax on
that year's tax return.
Form 5405 and its instructions will be
revised for tax year 2009 to include information
about repayment of the credit. |
