The Tax Resources Blog

Posts Tagged ‘credit’

Deadline Tax Credit

Question: Can you take the $7500 tax credit if you intend to buy a house before July 1?

Can you take the $7500 tax credit now (we will file our return in February), receive the money , THEN buy a house before July first? Also, supposing we did not make the July 1 deadline, would we just then immediately return the money to the IRS?

Answer: You need to purchase the home before taking the credit. The credit is based on 10% of the purchase price with a limit of $7500. Also there is an income limitation so the credit could be less due to phasing out.

I am attaching a link to the Irs Website to the form 5405 for you to gain more information about this credit.

Laura H – H&R Block – Senior Tax Advisor 5

Home Buyers Scramble For Tax Credit Deadline