You may be eligible for the tax credit if you purchase your first main home between Jan. 1, 2009 and April 30, 2010. You can also qualify if you enter into a binding contract before May 1, 2010 to complete the purchase of the home by June 30, 2010 and actually close on the home no later than Sept. 30, 2010.
The IRS requires you to provide documentation that proves you completed the purchase within the relevant time-frame. Generally, the settlement statement you receive that includes the names of the buyer and seller, property address, date of sale and purchase price is sufficient.
The maximum credit you can claim is the smaller of $8,000 or 10 percent of the home’s purchase price. When you fill out Form 5405, be sure the check the appropriate box indicating that you qualify as a first-time homebuyer.