once again - 1st time home buyer

[fliszt]

I'm working on a return where the client wants to claim the $7500 credit for being a 1st time home buyer last year. I tried to explain that the credit has to be paid back over a 15 year period. Client says I'm wrong. Now, it wouldn't be the first time I've misunderstood instructions, but I really don't want to do this for the couple IF it has to be repaid.
Any confirmations one way or the other?
Thanks.
Larry

[Burke]

You are not wrong. $7,500 credit for homes must be paid back over 15 years. IF he qualifies for new $8,000 for home bought 1/1/09 or later, it does not have to be paid back if he keeps it 3 years. You can can take the new credit on 2008 return to get the $$$ sooner. Depends on date he bought the home. Go to IRS website and download the news alert that gives you all the rules, and make him initial it, keep a copy for your files.

[fliszt]

Thank you very much.

I really appreciate your response. The settlement statement shows the home closed on Sept 15, 2008, so I'll do the 5405 for his 2008return.
Thanks again.
Larry