First-Time Hombuyer Credit logistics

Last week I served on the phone bank for WIS-TV's Tax Tuesday segment. The most common subject of questions was the First-Time Homebuyer Credit from the tax bill passed in February. I sense confusion about the timing and logistics of this credit.

The new, $8000 credit that does not require re-payment is only available to qualifying buyers who close from Jan 1, 2009 to Nov 30, 2009. Here's where it gets a little tricky--you can take the credit on your 2009 tax return or your 2008 tax return by using a special election, even if you have already filed your 2008 return.

This IRS news release gives the details.