Congress passed a measure this week extending the $8,000 home buyer tax credit to April 30, 2010. More people are now eligible to take advantage of the tax credit, which includes a $6,500 tax credit for buyers who are current home owners and have lived in their home for five of the past eight years.
Income limits for eligible home buyers were almost doubled to $125,000 for single buyers and $225,000 for couples, which is an increase from $75,000 for individuals and $150,000 for couples.
Qualifying homes are capped at a price of $800,000. Sen. Johnny Isakson, a Georgia Republican and a former member of NAR, was key in extending the credit, as well as pushing it through initially.
Specific Qualifications are as Follows;
- First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
- Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
How do you apply for the Credit on your Tax Return?
Once you’ve decided to purchase a home and take advantage of the Extended Home Buyer Tax Credit. Here’s what you have to do to get your benefit:
Close on your home purchase between November 7, 2009 and April 30, 2010, or have a binding written contract by April 30, 2010 and close by July 1, 2010.
Decide whether to:
- apply the credit to your 2009 tax return, filed on or before April 15, 2010;
- file an amended 2009 return; or,
- apply the credit on your 2010 return, filed on or before April 15, 2011.
Attach documentation of purchase to your return.
Buyers purchasing homes on or before December 31, 2009 may claim the credit on their 2009 tax returns.
Buyers purchasing in 2010 will have the option to:
- Claim the credit on their 2009 return, even if the purchase is completed after December 31, 2009;
- File an amended return for 2009 if their purchase is completed after April 15, 2010; or,
- Claim the credit on their 2010 tax returns.
Source of Information NAR
http://www.AthensGaHomesForSale.com
I’ve been interested in taxations for longer then I care to admit, both on the individualized side (all my working life story!!) and from a legal viewpoint since passing the bar and pursuing tax law. I’ve provided a lot of advice and redressed a lot of wrongs, and I must say that what you’ve posted makes impeccable sense. Please uphold the good work – the more individuals know the better they’ll be outfitted to deal with the tax man, and that’s what it’s all about.
Thanks for the comment Tax Guru. Keep up the good work!