I have received several questions about the new homebuyer credit that was made available by the recently passed Housing Tax Act. With banks now requiring a down payment, this is a good way for people that qualify to get an interest-free loan from the government. Those who bought a main home recently, or are considering buying one, may qualify for the first-time homebuyer credit. Normally, a taxpayer qualifies if he or she didn't own a main home during the prior three years. This unique credit of up to $7,500 works much like a 15-year interest-free loan. It is available for a limited time only — on homes bought from April 9, 2008, to June 30, 2009. It can be claimed on the new Form 5405, and is repaid each year as an additional tax. Income limits and other special rules apply. If you would like form information contact me at lkopsa@kopsaotte.com.
