Congratulations! You bought your first home and you are filing for your tax credit. NOT SO FAST! The IRS has not released the full guidelines yet. If you file now your application may go nowhere slowly.
First Time and Move Up Buyers are advised to wait until the the IRS publishes its updated Form 5405 with all the fine print instructions on how to apply. The current form online does not incorporate major changes in legislation signed by President Obama on Nov. 6, 2009. The changes refer to expanded income limits, a cap on the home's price, the documents you will need and screeds of detailed warnings about penalties for filing illegally. This is after all, a government program. Expect to need a translator.
By extending the the $8,000 first-time home-buyer and adding the $6,500 move up buyer tax credit more buyers will be able to take advantage of current low rates and great home prices during winter,. You must have signed your contract by April 30, 2010 and close the purchase by June 30, 2010. May 1 we expect to see both prices and rates will rise...or try to.
Good news! Members of the armed forces, diplomatic and intelligence staff who have served overseas get an extra year to buy a principal residence and qualify for either tax credit.
Motto: read the fine print: www.irs.gov save this link and watch for the FINAL version.
Happy filing! Loannetter