The Facts about the Home Buyer Credit, Plain and Simple

By
Real Estate Agent with The Kelly Group Real Estate

10 Important Facts about the Extended First-Time Homebuyer Credit 

If you are in the market for a new home, you may still be able to claim the First-Time Homebuyer Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act Of 2009, extending the First-Time Homebuyer Credit and expanding who qualifies.

Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.

  1. You must buy - or enter into a binding contract to buy a principal residence - on or before April 30, 2010.
  2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
  3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
  4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you've lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
  5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.
  6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.
  7. The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 - whether the credit is claimed for 2008 or for 2009 - and for all home purchases that are claimed on 2009 returns.
  8. No credit is available if the purchase price of the home exceeds $800,000.
  9. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
  10. A dependent is not eligible to claim the credit.

For more information about the expanded First-Time Home Buyer Credit, visit IRS.gov/recovery.

 

Links:

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Posted by

Sandy Mitchell, Buyer's Agent

503-502-6408

The Kelly Group, Keller Williams

Portland Premier

215 N Blaine St.

Newberg, Oregon 97132

 

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Re-Blogged 5 times:

Re-Blogged By Re-Blogged At
  1. Shana Haugen 11/25/2009 04:11 AM
  2. Mirela Monte 02/12/2010 10:38 AM
  3. Drick Ward Property Management / Broker Assoc 02/12/2010 10:50 AM
  4. Barbara Martino-Sliva, Top Producer 02/12/2010 11:32 AM
  5. Connie Betz 02/16/2010 10:23 AM
Topic:
ActiveRain Community
Location:
Oregon Yamhill County Newberg
Tags:
first time home buyer credit
home buyer credit

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Rainer
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Shana Haugen
Century 21 - Gold Key - Fargo, ND

Thank you for the simple summary!!

Nov 25, 2009 04:09 AM #1
Rainmaker
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Sandy Mitchell
The Kelly Group Real Estate - Newberg, OR
Making A House Your Home

Your Welcome Shana, it makes it pretty easy just to print it off and hand it to clients asking you questions.

Nov 25, 2009 04:21 AM #2
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Rainmaker
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Sandy Mitchell

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