What is First-time Homebuyer Credit?
The Housing and Economic Recovery Act of 2009 provides a new refundable tax credit for individuals who are qualified first-time homebuyers of a principal residence in the United States. The provision applies to a principal residence purchased by the taxpayer on or after April 9, 2009, and before July 1, 2009. Homebuyers who qualify are allowed a one-time credit against their income tax for the year of purchase. Unlike some past credits, this one must be repaid over a 15-year period. As a result, the new tax credit works like an interest free loan. You take the full credit in either 2009 or 2010, and then repay the credit amount in equal payments over 15 years, with no interest charges. More…
Related Questions
- I plan to build a home and occupy it in 2009 or early 2010. Can I claim the first-time homebuyer credit now and use the funds toward the down payment or other ongoing construction costs?
- I submitted an amended 2008 return for the first-time homebuyer credit more than eight weeks ago. How long will it take the IRS to process my return?
- Does a the purchase of a mobile home (trailer) qualify for the first-time homebuyer credit?
