Do I Qualify For The Tax Credit?
I’ve received calls this week about the extended tax credit from several current home-owners. This Tax credit was extended to a brief window in 2010. Now, not only is there a ta credit for first time buyers, but long term homeowners who want to sell and move as well.
If you or someone you know someone you know are considering a move in 2010, DO NOT miss this tax savings! Things will most likely be very different in 2010 as our government re-considers tax credits and the ability to keep offering these credits. Do not assume they will last. There will be an end, and there is no proposal at present or predicted to continue these tax credits.
Call Debbie Kirkland, your Realtor and Real Estate Professional if you have questions on selling your home or purchasing before April 30, 2010. Debbie Kirkland, Realtor 850-212-0440
The rules are below:
For a link to this IRS Publication Click Here
IRS Special Edition Tax Tip 2009-13
If you are in the market for a new home, you may still be able to claim the First-Time Homebuyer Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act Of 2009, extending the First-Time Homebuyer Credit and expanding who qualifies.
Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.
- You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010.
- If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
- For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
- A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you’ve lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
- The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.
- People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.
- The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 – whether the credit is claimed for 2008 or for 2009 – and for all home purchases that are claimed on 2009 returns.
- No credit is available if the purchase price of the home exceeds $800,000.
- The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
- A dependent is not eligible to claim the credit.
For more information about the expanded First-Time Homebuyer Credit, visit IRS.gov/recovery.
Links:
IR-2009-108, First-Time Homebuyer Credit Extended to April 30, 2010; Some Current Homeowners Now Also Qualify
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