The first time homebuyer tax credit and the move up buyer tax credit will be expiring in a couple of months.  Buyers must have a property under contract by April 30 and they must close on it by June 30, 2010.

Some are missing some of the important details of the tax credit.

Buyers should know they can claim the credit on their 2009 or their 2010 tax return. Some are even going back and amending their 2008 returns.

According to a recent report in CNN Money, buyers claiming the tax credit after they have purchased their homes cannot file electronically. Due to increasing cases of fraud they must fill out Form 5405 and mail it to the IRS with proof of residency.

Buyers can purchase a mobile home or a travel trailer that is fixed to owned land or leased by the land owner.  A mobile home not attached to land doesn't qualify.

The transaction must be an arm's length transaction.  It cannot be purchased from a relative: including a parent, a spouse, a child, a grandparent or a grandchild.

For the move up tax credit, an owner must have occupied the same home for a consecutive five of the last eight years.

A buyer can file a tax return to claim the tax credit, even if he earns no taxable income or doesn't owe any federal income tax. 

But, time is running out for you to take of advantage of the available credits.

Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate

Brevard County, Florida's Space Coast Real Estate & Investing

I specialize in Residential, Investment & Relocations.  We have a team of professionals that can help  with your Short Sale.

I buy, sell, rent, own and manage Investment Property.