New Home Buyer Credit

[Art]

If taxpayer buys the home in 2009 can he take the 10% credit up to $ 8000 on his 2008 return or does he have to wait till 2009 to claim the credit? The TTB update states that the credit is extended to include homes purchased before Dec 1, 2009 so I take that to mean that the credit can be taken on the 2008 return.

2nd if the taxpayer buys the home in 2008, the "old" rules still apply ie $ 7500 limit and must be repayed over 15 years, right?

[Koss]

New Rules for Homebuyer Credit

Purchases in 2008 are still subject to the old law in that the credit must be repaid over 15 years. However, purchases in 2008 now qualify for the expanded credit of up to $8000. Those who already filed a 2008 return claiming the $7500 credit can file an amended return. But it still has to be repaid.

Purchases in 2009 qualify for the credit and it does not have to be repaid. For a purchase in 2009, they can claim the credit on the 2008 return or the 2009 return.

BMK

[BP.]

However, purchases in 2008 now qualify for the expanded credit of up to $8000.
BMK

Haven't found info saying that 2008 purchases qualify for an $8,000 credit, just the $7,500 credit. Thought the $8,000 only applied to 2009 purchases through 30 Nov 09.

http://www.irs.gov/pub/irs-pdf/f5405.pdf

Form instructions say credit is $7,500, or $8,000 if home purchased in 2009. If you have different info, can you let us know? Thanks!

[Redneck]

However, purchases in 2008 now qualify for the expanded credit of up to $8000. Those who already filed a 2008 return claiming the $7500 credit can file an amended return. But it still has to be repaid.

BMK

Where is this found. The new Form 5405 does not give anyone who buys a home during 2008 anymore than 7500.

[Koss]

Goofed

Looks like I misread something somewhere...

The $8000 credit appears to be applicable only to purchases in 2009.

BMK

[indy]

wait til 2009 to enjoy the 8000 home credit

My understanding is that if clients want to utilize the 8000 home buyer credit, and not have to pay it back to the IRS, they must wait until they file their 2009 return, else they will be subject to the old rules and have to pay back the loan over 15 yrs....when I read up on this a week ago I was under the impression that they could amend the 2008 return to get the 8000 ... after a long discussion in our office, it looks as though the clients will have to wait til filing 2009 return to get the benefit of the new law. ....

[Larmil]

My understanding is that if clients want to utilize the 8000 home buyer credit, and not have to pay it back to the IRS, they must wait until they file their 2009 return, else they will be subject to the old rules and have to pay back the loan over 15 yrs....when I read up on this a week ago I was under the impression that they could amend the 2008 return to get the 8000 ... after a long discussion in our office, it looks as though the clients will have to wait til filing 2009 return to get the benefit of the new law. ....

The IRS doesn't agree with you. See http://www.irs.gov/newsroom/article/...204672,00.html

[Bees Knees]

My understanding is that if clients want to utilize the 8000 home buyer credit, and not have to pay it back to the IRS, they must wait until they file their 2009 return, else they will be subject to the old rules and have to pay back the loan over 15 yrs....when I read up on this a week ago I was under the impression that they could amend the 2008 return to get the 8000 ... after a long discussion in our office, it looks as though the clients will have to wait til filing 2009 return to get the benefit of the new law. ....

TTB just posted an update on this. The 2009 rules still apply if the election is made to report the 2009 purchase on a 2008 return.

http://www.thetaxbook.com/view_update.asp?1=128