Home Buyer Tax Credit Misconceptions - Check out this versatility!

By
Real Estate Agent with RE/MAX Premier, Realtors
https://activerain.com/droplet/54W

Many people have not looked at the generous details of the repeat home buyer tax credit! (Please remember that this information is general advice; consult your tax professional or the IRS for the most definitive interpretations of this benefit!)

Myth 1: A repeat buyer must buy a more expensive home or "move up" to claim the $6,500 credit...

TRUTH: The repeat buyer must have owned and lived in their home for at least 5 consecutive years of the last 8 years prior to the purchase date of the new property. Repeat buyers may purchase any home to be their new primary residence---more expensive, less expensive or the same price!

Myth 2: Two unmarried buyers cannot claim the tax credit if they purchase a home together, especially if they qualify for different credits...

TRUTH: The buyers can blend their credit, as long as the total credit for one purchased property does not exceed $8,000 (assuming one buyer is eligible for the first-time buyer credit) and as long as the manner of blending is reasonable--- so an even split of $4,000 each or a split of $6,500 to one and $1,500 to the other could be allowable.

Myth 3: You must occupy the home by April 30, 2010 in order to qualify for the credit...

TRUTH: As long as you enter into a binding sales agreement by April 30, you will still be eligible for the credit as long as you complete the purchase by June 30, 2010.

Myth 4: You cannot have access to the credit until after you close on the home...

TRUTH: As long as you are CERTAIN you will purchase a property, you can adjust your tax withholding in advance to compensate for your reduced tax burden during the year (assuming you will file this credit with your 2010 taxes--you also have the option to file this credit as if you purchased the property on December 31, 2009 if this works better for your tax situation).

For a more complete discussion of this program, visit www.federalhousingtaxcredit.com.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
Connecticut
Tags:
west hartford ct real estate agent
home buyer tax credit
west hartford real estate expert
brent bell crs

Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
39,764

Brent Bell

CRS, e-PRO, GRI, Hartford County
Ask me a question
*
*
*
*