With the passage of the American Recovery and Reinvestment Act of 2009 (ARRA 2009) comes an additional tax break for First-Time Homebuyers, in addition to the break already available in for homes purchased in 2008.
For your 2008 return (being prepared now) you have two different options available if you have purchased a home recently. If you purchased your home in 2008, you may qualify for up to a $7,500 credit (which must be repaid over the next 15 years). However, if you have purchased a home in 2009, you may be eligible to receive a credit on your 2008 return, up to $8,000. And this one does not have to be repaid!
Taxpayers who qualify for the first-time homebuyer credit and purchase a home after December 31, 2008 and before December 1, 2009 may claim the tax credit either on their 2008 tax return, due April 15, or on their 2009 tax return next year. Taxpayer’s may be eligible for up to $8,000 ($4,000 if MFS).
For more information, go to:
http://www.irs.gov/newsroom/article/0,,id=204672,00.html
Contact your tax professional if you need assistance with this item.
I can learn from you, you can learn from me - please leave your comments and links!Jim Blankenship, CFP®, EA, is an expert in personal retirement, IRAs, and tax issues, with more than 20 years of experience in the industry. . Read more from this author
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