2010 Home Buyer Tax Credit--Gives YOU an opportunity for Success!

It’s the beginning of the year and while your business plans are newly fresh with ink, there is one deadline you shouldn’t loose sight on-the Home Buyer’s Tax Credit!  It is important to stay abreast on these deadlines and to be helpful to your buyers when making an offer and selecting your appropriate close of escrow date. 

 Here’s a quick summary to help in YOUR 2010 Success:

• ·      First Time Home Buyers maximum credit amount is $8,000.
• ·      Purchases must be completed by 1/1/2009 to 4/30/2010.
• ·      Recurring Home Buyers maximum credit is $6,500.
• ·      Purchased must be completed by 11/7/2009 to 4/30/2010.
• ·      Credit will be allowed to homebuyers who sign a binding contract on or before 4/30/2010 and close by 6/30/2010.
• ·      Repayment of the tax credit is NOT necessary, unless the home does not remain the buyer’s primary residence for at least 3 years after purchase.
• ·      Military who are overseas may have up to an additional year to purchase a property.
• ·      Home Buyers will need Form 5405 to be included in their tax returns. You can obtain a downloadable pdf version at: http://www.irs.gov/pub/irs-pdf/f5405.pdf 

 

Unless you are a tax professional, remember to refer specific tax questions to your clients’ tax consultant, as they will be more equipped to provide the necessary information. 

Happy Closing and Salute to a New Year!