$8,000.00 Home Buyers Credit!

The first time home buyer credit ended on September 30, 2010 but ...

The  first time home buyer credit was extended to April, 2011 for military personnel.

Read on for those few military that took the deal.

You will have to repay the home buyer credit.

It is an additional tax on your federal tax return lasting for fifteen years.

For those who bought in or before 2010 it would start in 2010.

 Essentially it is up to an eight thousand dollar government loan with no interest.

If you sell the house before the tax credit is paid off you will have to pay it in full at that time.

If you decide to make the home your secondary residence then you have only 36 months to pay it off.

You can't sell the house within the same year that you bought it without the penalty of losing the tax credit.

 
The issue came up about the fairness of the situation and things were changed to help the military families. Since they were serving overseas it was only fair.

Many folks in the military were overseas and had, had no chance to take advantage of the offer.

You can download a copy of Form 5405.

You will want the Instructions for Form 5405.

 Here is a bit more information from the IRS about the tax credit.