Act Now and Take Advantage of your first time homebuyer tax credit ~ Get Going before it's too late, and deadline for purchase and closing of escrow is November 30, 2009.
Existing US home sales have jumped recently, and first-time homebuyers are buying about one third of all homes sold. This is because of tax incentives, interest rates at historic lows and housing affordability at best level in many years.
Guidelines for eligibility for this tax credit:
- First-time homebuyers can claim 10% of the purchase price up to $8,000, or $4,000 for married individuals filing separately.
- Tax Credit for purchases completed on or after January 1, 2009, and before December 1, 2009.
- Tax credit is refundable, and recipients receive a check for any claim amount beyond what's owed in taxes.
- Eligibility for first-time homebuyer credit is determined by date of completed purchase, not the date of occupancy. Exception: If the home is being constructed, then the date of occupancy is considered the date of purchase.
- The home must be used as a primary residence (generally defined as where an individual spends more than 50% of their time).
- The buyer, or either spouse, cannot have owned and used a home as a primary residence within the last three years.
- A taxpayer who owned a rental property but not a primary residence within the past three years is eligible for the credit.
- Tax credit does not have to be repaid unless the home is sold or ceases to be the primary residence within three years.
- The home cannot be inherited, received as a gift, or purchased from a spouse or related person.
- Tax credit applies to any type of new or existing dwelling. Some houseboats and manufactured homes used as primary residences could be eligible.
Income limitation ~ The $8,000 tax credit phases out for individuals with modified annual gross income (MAGI) of $75,000 to $95,000 and married couples with MAGI of $150,000 to $170,000.
If you qualify for the first-time homebuyer tax credit, you must use and fill out the IRS Form 5405 and claim this amount on line 67 of their 1040 income tax form for 2009. For other information about this tax credit, check out the Internal Revenue Service Newsroom.
No Excuses Will Be Accepted ~ Get going now to take advantage of this opportunity to buy a home and get the income tax credit.
Be careful ~ Contact an experienced Realtor who will help you determine eligibility. If that's unclear and you have questions, contact your experienced income tax professional.
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Contact us if you have questions about the Orange County Real Estate Market. Thanks. Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA.
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