Today the IRS released form 5405, which allows homebuyers to claim up to an $8000 tax credit for the purchase of a home. Right-click here to download form 5405 (265KB PDF). You can find full details on claiming the tax credit on IRS.gov.
Realtors should probably review form 5405 to be able to speak authoritatively with clients about the tax credit. If you’d like to give your clients a more – ahem – visually appealing tool to understand how the credit works, download VAR’s brochure about it (pictured here).
And don’t forget, first time homebuyers who buy a home in Virginia and who satisfy the requirements can take advantage of the First Time Homebuyer Tax Credit Plus program from VHDA (right click to download information), which allows first time homebuyers to monetize up to $8000 of the Federal tax credit to apply towards a down payment and/or closing costs through a second mortgage. And that’s a pretty sweet deal for first time buyers.