The new repeat buyer tax form is ready to be used Toledo area homeowners to claim up to a $6,500 Federal Tax Credit. Find the Form 5405 at www.irs.com. It is important to understand just who can take advantage of this repeat buyer credit...
- Homeowners buying a new home who have lived in their current home for 5 consecutive years out of the past 8 years. This helps people who sold and have had to rent temporarily while they search for a new home.
- The homes must be closed on by June 30th, but be in contract by April 30th. If you are in the military,intelligence or diplomatic service, you get an extension of a year on these dates.
- Income and home price limits do apply. Check the IRS site for more specifics on these.
- Save your HUD or Settlement form from the closing which you'll need to submit along with good proof of how long you lived in your previous home. Probably the easiest records to submit are insurance and property tax records.
- Sell that new house or turn it into a rental before you've owned it for 3 years and you'll have the government come asking for the credit money back.
