It is such a nice feeling to have your own home, your own dream home. One has to put lot of efforts and energy to make their dreams come true. In past few year when the economy was not doing well it had become more difficult to maintain steady source of income and it seemed the dream of owning a home would be still at some distance. This period witnessed another phenomenon which saw property prices came crashing down. In budget terms the home of your dreams would be closer but big question was will you be able to retain your earning levels.
Government came to rescue for many such people those who could buy homes at reduced prices but were not sure of their future income levels. Also developers who were building these homes were stuck with huge investments in their projects and construction activity throughout the country was bought to a standstill. IRS launched a scheme in 2008 according to which Americans those who were buying their homes for the first time could avail special income tax credits.
For those who availed the benefits from this scheme must start repaying these credits from 2010 onwards. That means returns to be submitted in 2011 should included repayment of such credits. These credits are to be repaid within a time period of 15 years commencing from year 2010. IRS has already sent reminders to taxpayers those who have availed this scheme. Repayment has to be reported by using Form 5405.