The credit for first-time home buyers is a lot sweeter. For primary homes purchased this year before December 1, 2009, the maximum credit increases to $8,000, and it needn't be paid back. The 15-year repayment rule still applies to residences bought in 2008, however. Folks who buy homes in 2009 can elect to claim the credit on their 2008 returns. IRS has already revised Form 5405 to reflect the $500 hike in the maximum credit as well as the waiver of the credit repayment requirement. The credit is refundable. allowed in full even if it exceeds your tax bill for the year. But the credit will be recaptured if the home is sold within three years of purchase.
