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Time is Short- Act Now Before FIRST TIME HOME BUYERS TAX CREDIT Expires
The American Recovery and Reinvestment Act modifications are still available and offer unique opportunities for those who have not owned a principal residence in 3 years; and for those moving from one principal year round residence (owned for several years) to another.
Renters, stop renting and invest in your own home. In addition to the financial rewards of living in a single family detached home on leased land you will receive a financial reward on your tax return. Now is the right time to make the move.
The sunset of this act is April 30, 2010. If you have signed a contract and if you complete your move/contract by June 30, 2010 you will retain the benefits described below. We do not know if The Act will be extended.
10 IMPORTANT FACTS ABOUT
THE EXTENDED FIRST-TIME HOME BUYER CREDIT (1)
IF YOU ARE IN THE MARKET FOR A NEW HOME, you may still be able to claim the First-Time Home buyer Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act of 2009, extending the First Time Home buyer 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:
1. You must buy - or enter into a binding contract to buy a principal residence on or before April 30, 2010.
2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
4. 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 purchases and the settlement date is after November 6, 2009.
5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.
6. 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.
7. 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.
8. No credit is available if the purchase price of the home exceeds $800,000.
9. The purchaser must be at least 18 years old on the date of the purchase. For a married couple, only one spouse must meet this age requirement.
10. A dependent is not eligible to claim the credit.
For more information about the expanded First Time Home Buyer Credit, visit IRS.gov/recovery.
(1) Copied from MoneyMattersNJ.com/story.cfm?sid=14439
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