Move-Up/Repeat Home Buyer Tax Credit Overview

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Real Estate Agent with Berkshire Hathaway C Dan Joyner Realtors
Qualifying Conditions: The tax credit is equal to 10% of the purchase price up to a maximum of $6,500. Purchases above $800,000 are not eligible. Purchase of owner-occupied primary residence between November 7, 2009 and April 30, 2010 -- or one that closes by June 30, 2010, provided a binding sales contract was in force by April 30, 2010. Any kind of home including single-family, townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. Home owner must have owned and resided in a home for at least 5 consecutive years of the 8 years prior to the purchase date. Married taxpayers: both the home buyer and his/her spouse must pass the homeownership history test. The income limit for single taxpayers is $125,000 and $225,000 for married taxpayers filing a joint return. Other Facts: New Construction is treated by the tax code as having been “purchased” on the date the owner first occupies the house Repeat home buyers do not have to purchase a home that is more expensive than their previous home. The law allows taxpayers to choose to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008, or if the purchase occurred in 2010, choose to treat it as if it occurred December 31, 2009. This means that the previous year’s income limits apply. A benefit of being able to choose which tax year to apply the credit is that a home buyer in 2009 will know their prior year income and whether they qualify. Qualified homebuyers will use IRS Form 5405 to submit for the credit. However the current form 5405 is for tax year 2008. Someone wanting to apply the credit to their 2009 taxes will still use form 5405 but will need to wait until the IRS publishes the one dated 2009 in the upper left corner. Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using IRS Form 1040X. Sheri Sanders Prudential C Dan Joyner Co Realtors Realtor/Broker 864-238-7057 Sheri@TheSandersEdge.com TheSandersEdge.com Serving Easley, Liberty, Powdersville, Greenville, Piedmont, Williamston, Pelzer, Pickens, and other surrounding areas of the Upstate of South Carolina
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Sheri Sanders

Realtor/Broker

Prudential C Dan Joyner Co Realtors

Sheri@TheSandersEdge.com

864-238-7057

www.TheSandersEdge.com

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Sheri Sanders

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