New legislation, the Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009 , extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:
- Extends deadlines for purchasing and closing on a home. - Authorizes the credit for long-time homeowners buying a replacement principal residence. - Raises the income limitations for homeowners claiming the credit.
Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.
People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009 . The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009 .
General Information
Homebuyers who purchased a home in 2008 or 2009 may be able to take advantage of the first-time homebuyer credit. The credit:
- Applies only to homes used as a taxpayer's principal residence. - Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar. - Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed. The credit is claimed using Form 5405, which you file with your original or amended tax return.
For 2008 Home Purchases
The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.
For 2009 Home Purchases
The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1.
For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.
First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009 , or a 2009 tax return, due April 15, 2010 . The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009 , a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options.
Questions and Answers
More information is available in the question and answer section. The website is www.irs.gov or you can contact the IRS or your Accountant for more information
Related Items
- IR-2009-83, First-Time Homebuyer Credit Provides Tax Benefits to 1.4 Million Families to Date - The American Recovery and Reinvestment Act of 2009: Information Center.
NEED TO BUY A HOME OR SELL YOUR HOME?
JEAN VILLA Sales Agent Weichert Realtors 908-319-9556
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Find your Stewartsville / Bloomsbury home in the following developments: Brian Estates, Greenfields, Greenwich Chase, Greenwich Hills, Kennedy Mills, Pace Setter, Scotts Mountain, Stewart Hunt, Wyndham Farms and Wyndham Hills.
I am glad to announce that I have a launched my new website featuring homes in Stewartsville, NJ 08886. Stewartsville is now a Seller's Market and houses are selling fast.
My website can be viewed at http://www.WeichertStewartsville.com and features homes for sale as well as community information. These listings are coming directly from the GSMLS and are updated by the minute. Stewartsville properties that have been newly listed or had price changes will be listed immediately.
In addition to all of the great information on Stewartsville homes, I also provide numerous ways to search the Central New Jersey MLS for listings along the Route 78 Corridor in Warren & Hunterdon Counties.
Please feel free to search my websites and let me know how I can be of service to you.
It's great to buy a home in Stewartsville with beautiful homes in Wyndham Farms, Greenwich Chase, Stewart Hunt, Greenfields, Greenwich Hills, Brian Estates and more. Come move to this great community!
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Sell your home / homes for sale in Stewartsville, Greenwich Twp, Bloomsbury, Lopatcong, Asbury, Bethlehem Twp, Milford, Holland Twp, Clinton NJ and more?
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First-Time Home Buyer Tax Credit Program: Ending December 1, 2009 - JEAN VILLA, Weichert Realtors - 908-319-9556
First-Time Home Buyer Tax Credit Program: Ending December 1, 2009
Home buyers in the Hunterdon & Warren County area are wanting to take advantage of the first-time buyer tax credit should be aware that the clock is ticking its way down to the deadline.
The program expires December 1, 2009.
Remember too that you have to allow for a 60 or so day time frame from contract to closing. That scenario would give you a little over 70 days from now to find that home.
The program allows for a tax refund of up to $8,000...a lot of money by any standard, and especially in the current environment.
There are qualifiers. They include:
·The buyer may not have owned a primary residence in the past 36 months
·Can't purchase the property from family member
·The household adjusted gross income must be below $95,000 for single tax filers and $170,000 for joint tax filers
Also to know, the tax credit itself is limited to $8,000 or 10% of the purchase price, whichever is less.
Something else to remember is the fact that this is a true tax credit - not a deduction. For example, a taxpayer owing $8,000 to the IRS and claiming the $8,000 First-Time Home Buyer Tax Credit would not owe the IRS a thing on April 15, 2010.
Yes...it is a good deal. If you want details on it you can take a look at the list of criteria on the IRS website.
And of course, if you are in the Stewartsville, Lopatcong, Bloomsbury, Asbury, Clinton or local area, or moving into the area, let me know if you have any questions. I am always here for you.
If you know anyone who may be interested in moving or if you are considering making a move, I'd be happy to help. Please feel free to call or email me.
This should be done before you hire them to sell your house.
The more pages they have on Google, the more times they appear on the 1st page of Google, the better chance you have of having your home seen by home buyers. Where they are physically located is not as important as their presence on the internet. Do they advertise throughout the internet?
Home Buyers are on the Internet. Make sure your Realtor is too!
Example of Words to Google are:
Realtor's Name (like Jean Villa)
City name and Real Estate (like Stewartsville Real Estate)
City name and Home Buyer (like Stewartsville Home Buyer)
City name and Home For Sale (like Stewartsville Home for Sale)
Good luck and hope you receive a good offer soon.
Click http://www.RealEstateRoute78.comwhere you can pick any community or city around Stewartsville and see homes for sale and pick the area you are interested in finding a home or townhouse for sale. If you have a real estate question that you would like an answer to, be sure to check outand read what other home buyers and home sellers have asked and feel free to ask your Real Estate question via email to JVilla@Weichert.com.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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