First Time Home Buyers Tax Credit Idaho Falls

Russ Donahoo — Wed, 28 Oct 2009 20:54:10 +0000

The original deadline for the first time homebuyers tax credit is quickly approaching! The original rules were as follows:

First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2008 or 2009. The credit:

Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
Applies only to homes used as a taxpayer’s principal residence.
Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.
Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

The credit is claimed using Form 5405, which you file with your original or amended tax return. More info at www.irs.gov.

There was news today that there may be an extension on this tax credit through April 2010, however the amount may be reduced by up to 10%. To take advantage of this first time home buyers tax credit for the full amount of $8,000 here in Idaho Falls, contact me as soon as possible.