Topic 612 - First-Time Homebuyer Credit – Purchases Made In 2009

The Housing and Economic Recovery Act of 2008 created a new refundable tax credit, beginning in 2008, for individuals who are qualified first-time homebuyers of a principle residence in the United States. Topic 611 explains the general rules that apply to this credit for 2008. The American Recovery and Reinvestment Act of 2009 made changes to the credit for qualified purchases made in 2009. The information in this Topic explains the changes to the credit for 2009 purchases.

Rule Changes For 2009:

• Qualifying taxpayers who buy a home after December 31, 2008, and before December 1, 2009, can claim a first-time homebuyer credit of 10% of the home's purchase price, up to $8,000 ($4,000 for married filing separately).
• Qualified 2009 homebuyers do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date.
• Taxpayers who qualify for the 2009 credit can elect to claim the credit either on their 2008 tax return or on their 2009 tax return.

For more information on the new 2009 rules for this credit you may refer to the following references on the IRS Website at www.irs.gov.: The Form 5405 Instructions, the 2009 IRS News Release (IR-2009-14, Feb. 25, 2009), the First-Time Homebuyer Credit Information Center article, and additional topics on this subject.