General - First Time Home Buyer's Credit

[Virtual Managed Solutions]

This year, an $8,000 tax credit is eligible for first time home buyer's. My question is, is this credit available every year, or is just for this year only? Or, do they offer something different every year? Any information on this would be appreciated. Thanks everyone!

[JRS]

"A tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009." As of NOW, the credit is only for 2009 and escrow has to close before 12/01/2009. Who knows what they will offer next year.

[mcb39]

JRS is correct...for 2008 it was a $7500 no-interest "loan" that has to be paid back over 15 years. This year it is the $8000 credit, BUT there is a lot of criteria to follow as to eligibility. In regard to anything, I always tell my clients, "That is the law this year. Who knows what it will be next year!"

[Virtual Managed Solutions]

JRS & mcb39, thank you for the responses.

Do either of you, or anyone else, have a link to all these eligibilities that one must meet to get the tax credit?

[JRS]

Here is a site with "frequently asked questions." You can also go the the IRS website for more info.

http://www.federalhousingtaxcredit.com/2009/faq.php

[Lion EA]

Here's a good starting point on the IRS site:

http://www.irs.gov/newsroom/article/0,,id=....html?portlet=7

[mcb39]

I also went to the IRS web site and printed everything relative to the Recovery and Reinvestment act. Also have a "Special Report" from CCH; but don't remember where I got it. All of these pages have been referred to over and over as clients as well as other preparers, call with questions. So many people are also asking about the credits for Energy Efficient Improvements to Existing Homes. All of those who purchased new furnaces last year with the idea that they would get a credit as well as the new furnace they needed, are kicking themselves. Just more proof that one never knows what the Government will do from one year to the next.