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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 plan to build a home
and occupy it in 2009. Can I claim the first-time
homebuyer credit now and use the funds toward the
down payment or other ongoing construction costs?
A. No. To qualify for the first time home buyer
credit, the residence must be purchased. By statute,
a residence which is constructed by the taxpayer
is treated as purchased on the date the taxpayer
first occupies the residence. (05/06/09)
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.
Information Courtesy of the IRS website
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