First Time Homebuyer Credit

Changes have been made to the 2008 First Time Homebuyers Tax Credit. Form 5405 is the IRS form that you will use to obtain your tax credit. This form can be found on www.irs.gov . This form should only be used for purchases (actual closing) of property prior to November 7, 2009. The form also has general instructions, who can not claim the credit, amount of credit and repayment of credit. You generally must repay the credit over a 15 year period in 15 equal installments if you purchased before 2009. If you purchased in 2009 you don’t have to pay the credit .  The form is 3 pages, read the whole form and then fill out the top of page one.   Attach the form to you closing settlement sheet (HUD 1) which  you received at closing. Both documents will become part of your tax return.

If you closed after November 7, 2009 you will be using a revised form 5405. This form is not yet available on irs.gov.