8000 First Time Home Buyer 6500 Move Up Repeat Home Buyer • 8 000 tax credit is for first time home buyers • To be eligible to claim the tax credit buyers only F by spj99355

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									      $8000 First-Time Home Buyer                       $6500 Move-Up/Repeat Home Buyer

• $8,000 tax credit is for first-time home buyers   • To be eligible to claim the tax credit, buyers
only. For the tax credit program, the IRS defines   must have owned and lived in their previous
a first-time home buy er as someone who has         home for five consecutive years out of the last
not owned a principal residence during the          eight years.
three-year period prior to the purchase.
                                                    • The tax credit does not have to be repaid.
• The tax credit does not have to be repaid.
                                                    • The tax credit is equal to 10 percent of the
• The tax credit is equal to 10 percent of the      home’s purc hase price up to a maximum of
home’s purc hase price up to a maximum of           $6,500.
$8,000.
                                                    • The tax credit applies only to homes priced at
• The tax credit applies only to homes priced at    $800,000 or less.
$800,000 or less.
                                                    • The credit is available for homes purchased
• The tax credit now applies to sales occurring     after November 6, 2009 and on or before A pril
on or after January 1, 2009 and on or before        30, 2010. However, in cases where a binding
April 30, 2010. However, in cases where a           sales contract is signed by April 30, 2010, the
binding sales contract is signed by April 30,       home purchas e qualifies provided it is
2010, a home purchase complet ed by June 30,        completed by June 30, 2010.
2010 will qualify.
                                                    • Single taxpayers with incomes up to $125,000
• For homes purchased on or after January 1,        and married couples with inc omes up to
2009 and on or before November 6, 2009, the         $225,000 qualify for the full tax credit.
income limits are $75, 000 for single tax payers
and $150,000 for married couples filing jointly.    FOR MORE INFORMATION PLEAS E GO TO:
                                                    http://www. federalhousingt axcredit.com
• For homes purchased after November 6, 2009
and on or before April 30, 2010, single             This source is provided for your convenience only. Hickman Realty Group
                                                    does not endorse the NAHB , nor does it represent and warrant any
taxpayers with incomes up to $125, 000 and          inf ormation set forth on its website. Hickman Realty Group has no
married couples with incomes up to $225,000         aff iliation with the NAHB.

qualify for the full tax credit.
The Internal Revenue Service released a new form that eligible homebuyers need to claim the
first-time homebuyer credit this tax season. Taxpayers claiming the homebuyer credit must file a
paper tax return because of the added documentation requirement s. In addition to filling out a
Form 5405, all eligible homebuyers must include with their 2009 tax returns one of the following
documents in order to receive the credit:

• A copy of the settlement statement showing all parties’ names and signatures, prope rty
address, sales price, and date of purchase. Normally, this is the properly exec uted Form HUD-1,
Settlement Statement.

• For mobile home purchasers who are unable to get a settlement statement, a copy of the
executed ret ail sales c ontract showing all pa rties’ names and signatures, property address,
purchase price and date of purchas e.

• For a newly constructed home where a settlement statement is not available, a copy of the
certificate of occupancy showing the owner’s name, property address and date of the certificate.

In addition, t he new law allows a long-time resident of the same main home to claim the
homebuyer credit if they purchase a new principal residence. To qualify, eligible taxpay ers must
show t hat they lived in their old homes for a five -cons ecutive-year period during the eight-year
period ending on t he purchase date of the new home. The IRS has stepped up compliance
checks involving the homebuy er credit, and it encouraged homebuyers claiming this part of the
credit to avoid refund delays by attaching documentation covering the five-c onsecutive-year
period:

• Form 1098, Mortgage Int erest Statement, or substitute mortgage interest statements,
• Property tax records or
• Homeowner’s insurance records.

These new documentation requirements mean that taxpayers claiming the credit cannot
file electronically and must file paper returns. Taxpayers can still use IRS Free File to prepare
their returns, but the returns must be printed out and sent to the IRS, along with all required
documentation. The IRS encourages taxpayers to use direct deposit to speed their refund. In
addition, taxpayers can use Where’s My Refund? on IRS.gov to track the status of their refund.

More details on claiming the credit can be found in the instructions to Form 5405, as well as on
the First-Time Homebuyer Credit page on IRS.gov.

This source is provided for your convenience only. Hickman Realty Group does not endorse the IRS, nor does it
      represent and warrant any information set forth on its website. Hickman Realty Group has no affiliation with the
      IRS.

								
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