Here are answers to some of the common questions homeowners have about the First-Time Homebuyer’s Tax Credit. You can find most answers by going to the IRS Update on Recovery Tax Provisions for Individuals and Businesses section. You can also download Form 5405 (First-Time Homebuyer Credit Form) and find details within the instructions for filing this form.
Does the tax credit apply if you’re building your home?
Yes, construction loans qualify for the credit. You just need to remember that they consider the first day you occupy your new how as the date of purchase, not the day you begin construction.
Is the $8000.00 a credit over an above a refund. For example if someone were to get a $1500.00 refund from federal, would their total refund be $9500.00 with this new tax credit.
Yes. The credit is in addition to your regular tax refund. If you owe money it will be deducted.
If you’re looking to build your first home, The House Designers offers a diverse selection of affordable house plans and informative articles to help guide you through the entire home building process.
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Christine Cooney
Christine has over a decade of experience as a house plan and floor plan expert. Outside of providing her expertise to customers to help them find and build their dream homes, her passion and knowledge of the home building industry allows Christine to guide families and builders through all of the important steps from finding plans to building custom homes that meet the expectations of today’s new home owner. Christine’s years of knowledge of the diverse trends and needs of the modern homeowner has made her into an authoritative and trusted voice in the online house plan community.