A lot of Iowans bought their first home this year to take advantage of an $8,000 tax credit. Terry Lemons is a spokesperson for the Internal Revenue Service. He says around 16,000 Iowans have already claimed the credit. There’s still time for first-time home buyers to participate in the program, but time is running out.
“They need to close on their home before December 1,” Lemons said. “It takes 60 to 90 days to close on a home, so we’re really getting into the final window of opportunity for this.” Taxpayers who close on their home before the December 1 deadline can claim the credit on their 2008 returns or wait until filing their ’09 returns.
“We you file your tax return, there’s a special form for the first-time home buyers credit. It’s form 5405,” Lemons said. There are a number of restrictions on eligibility for the tax credit. Details are available online at www.irs.gov.