Tuesday, March 23, 2010

Act Now Before It's Too Late - Find and Buy The Right Home and Get Your US Homebuyer Tax Credit

To take advantage of the US homebuyer tax credit up to $8,000, now is the time for you to act.
The US Worker, Homeownership and Business Assistance Act of 2009 was signed into law on Nov. 6, 2009, extending and expanding the first-time homebuyer credit allowed by previous Acts.
Under this law, an eligible taxpayer must buy, or enter into a binding contract to purchase a principal residence (a home) on or before April 30, 2010, and close escrow on the deal by June 30, 2010.
For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.  

The law also authorizes tax credit up to $6,500 for long-time homeowners buying a new principal residence and raises the income limitations for homeowners claiming the credit

This law extends the tax credit to long-time residents of the same main home if they purchase a new main home. To qualify for this, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home.  For long-time residents claiming the credit, the IRS recommends attaching, in addition to the documents described above, any of the following documentation of the five-consecutive-year period:
  • Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements
  • Property tax records 
  • Homeowner’s insurance records

If you satisfy these conditions, you could be eligible for the credit as a long-time resident of the same home.

For additional information about the tax credit, review the IRS Form 5405 and Instructions, which are available at the IRS web site - www.irs.gov.  For answers to your specific tax questions, contact your qualified income tax professional or C.P.A.
Now is the time to hire your local REALTOR agent and find the right home to buy and get under purchase contract no later than April 30, 2010.

Posted via email from Explore OC Homes


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