The homebuyer tax credit forms and rules are now in place for 2009 !!!
I just wanted to let all of my realtor friends be informed of this new tax credit and use it as a tool to get your fence sitters into action... if you are in Georgia... feel free to send them to me for pre approval - I will include the tax forms in their closing package along with their appraisal and homestead exemption forms.
The Treasury Department has approved and put into place this portion of the American Recovery and Reinvestment Act of 2009.
The Treasury and the IRS which will manage the tax credits have the forms and regulations in place for homebuyers who wish to claim the first time credit established.
The forms and instructions for claiming the credit on the 2008 tax returns are available on www.irs.gov the form number is 5405.
The credit is available to homebuyers who purchase a home before December 1, 2009. The IRS is allowing homebuyers to claim the credit either on their 2009 tax return or immediately on the 2008 return due in April.
The tax credit represents 10 percent of the purchase price of a home up to a maximu of $8,000 or $4,000 for married taxpayers filing separate returns. The $7,500 tax credit that was authorized under earlier legislation last year was actually a 15 year loan; the new tax credit does not have to be repaid by the homeowner under ordinary circumstances. The credit DOES have to be repaid if the homeowner sells the home in less that 36 months or if the home ceases to be his/her principal residence during that time.
For the purpose of this credit, a first time homeowner is defined as one who has not owned a home for the 36 months ending on the date of purchase.
The tax credit is available to taxpayers with adjusted gross incomes up to $75,000 or $150,000 for married taxpayers filing jointly. Anything above those income levels the credit is gradually phased out.
Homeowners who purchased a house between April 8 and December 31, 2008 (previous year) are not eligible for the new revised credit. They are governed by earlier legislation and can claim the $7,500 repayable credit.