Franklin, Tennessee – Thinking about making a purchase?. As part of the American Recovery and Reinvestment Act of 2009, the IRS has officially released Form 5405 — better known as the First-Time Homebuyer Credit Form – now you just have to find your Franklin Tennessee home to buy (that’s where we can help :=).
True to tax code standards, the 10-field form is accompanied by 3 pages of instructions.
Form 5405 is a helpful, go-to resource for Franklin Florida home buyers with questions about the first time homebuyer tax credit.
For example, the form distinguishes tax consequences for homes bought in 2008 versus 2009, and clearly defines the term “first-time home buyer”.
In addition, Form 5405 highlights the math behind the tax credit. In general, the First-Time Homebuyer Credit is equal to the lesser of:
- $8,000 for Tennessee homes bought in 2009
- 10 percent of your home’s purchase price
- Married couples filing separately are entitled to half of the expected credit, and homes sold within 3 years are subject to a credit repayment in the year the home ceases to be the “main home”.
Form 5405 is a comprehensive reference. However, be sure to check with your accountant for specific questions about your personal returns and how the First-Time Homebuyer Credit may impact your finances. There is no substitute for professional, paid advice.
This past week we were excited to be able to help a widow buy her new Franklin home after renting the last few years while her husband was in a nursing home. He recently passed away and now she’s being blessed with a new beginning. The good news is it appears that even she will meet the guidelines for this first time homebuyer tax credit and while she doesn’t normally file taxes – she’s contacted a CPA and will this year and is delighted to know that Uncle Sam will be sending her a check for $8,000 which she’s excited to use to remodel her kitchen.
Related posts:
- November 2009 Housing Sales Statistics – in the Middle-Tennessee Area I find that a lot of my clients like to...
Related posts brought to you by Yet Another Related Posts Plugin.
