The internal revenue service recently issued a revision to the 5405 Form. The form is designed to walk the “First-Time Homebuyer” through the process of claiming the credit credit. Here are a few more details about the credit.
Exactly Who Can Claim the Credit
For the most part, you are eligible to claim claim the credit if you purchased a primary residence located in the United States between April 8, 2008, and December 1, 2009 and you or your spouse (if married) did not own any other home during a three year period ending on the date of the purchase. In addition, if you build a home, it is the same as if you had purchased it on the first day that you moved in.
Exactly Who Cannot Claim the Credit
You can't claim the credit if you make more than $95k per year or $170k a year filing jointly. Other things that can disqualify you are: non-resident with alien status, home owner as a result of a gift,home owner as a result of a family purchase. There are a few other exclusions, so be sure to read the fine print.
More Details of the Credit
For homes specifically purchased in 2008: The credit will be similar to an interest free loan that will have to be paid back over 15 installments starting in 2010. If the home ceases to be your primary residence within the term of the loan (15 years), you will have to pay the loan off in full in the very same year.
For homes specifically purchased in 2009: The repayment of the credit or loan will be waives so long as it remains your primary residence for a 36 month period begining on the day of the closing of the home. Again, if the home ceases to be your primary residence within the 36 month period, you'll have to pay it back that year.
The total amount of the credit is the lesser of $7500 ($8000 for homes purchased in 2009) or 10% of the purchase price of the home. You get the full amount if your income is less than $75k per year or $150k for married couples filing jointly.