Florida Real Estate Blog

This is an IRS credit to a homebuyer it will reduce your tax liability or if you have already filed your tax return you can file an amendment form and they will send you a check for the amount you qualify for. There is a cap on the size of home and your income. Home size is nothing over $800,000 (poor baby). Income is $125,000 single and $225,000 family filing jointly. The credit is actually 10% of your sale price. So a home purchased for $50,000 would only qualify for $5,000 not the $8,000.

First time home buyers credit is a max of $8,000. First time buyer is defined as anyone who has not owned a home in the past 3 years. The $6,500 credit is for a family that has owned their home at least 5 of the last 8 years.

The form you need to file is a 5405 we can supply that to you or you can go to IRS.gov and download your own and preview their FAQ’s that covers this in a lot more detail than a blog allows.

P.S. That long form you had to sign 8 different copies at the time of closing. Yep they want to see one of those( you will find it in the folder the Title Company gave you that day).  Hope you already corrected your drivers license with your new address cause they would like a copy of that.