Here are answers to some of the common questions homeowners have about the First-Time Homebuyer’s Tax Credit. You can find most answers by going to the IRS Update on Recovery Tax Provisions for Individuals and Businesses section. You can also download Form 5405 (First-Time Homebuyer Credit Form) and find details within the instructions for filing this form.
Does the tax credit apply if youâ€™re building your home?
Yes, construction loans qualify for the credit. You just need to remember that they consider the first day you occupy your new how as the date of purchase, not the day you begin construction.
Is the $8000.00 a credit over an above a refund. For example if someone were to get a $1500.00 refund from federal, would their total refund be $9500.00 with this new tax credit.
Yes. The credit is in addition to your regular tax refund. If you owe money it will be deducted.
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