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Only 63 Days Left To Claim The Homebuyer Tax Credit

by Mark Rieger, Duke Warner Realty

There's 63 Days Left From This Blog Posting on 2/26/10 To Claim The Homebuyer Tax Credit

November 6, 2009, Congress voted to extend and expand the First-Time Home Buyer Tax Credit program.  There’s 63 days left to claim it.

The expiration date of the up-to-$8,000 tax credit has been pushed forward to spring, requiring homebuyers to be under contract for a home no later than April 30, 2010, and to be closed no later than June 30, 2010.

In addition, “move-up” buyers were also added to the program’s eligibility list meaning you don’t have to be a first-time home buyer to be eligible for the tax credit.  If you’ve lived in your home for 5 of the last 8 years, you meet the IRS requirements.

Move-up buyers are capped at a total tax credit of $6,500.

The tax credit’s basic eligibility requirements remain the same:

  • You can’t purchase the home from a parent, spouse, or child
  • You can’t purchase the home from an entity in which they’re a majority owner
  • You can’t acquire the home by gift or inheritance
  • All parties to the purchase must meet eligibility requirements

The new law includes some notable updates, however.

First, the subject property’s sales price may not exceed $800,000. Homes sold for more than $800,000 are ineligible.  And, also, household income thresholds have been raised to $125,000 for single-filers and $225,500 for joint-filers.

And lastly, don’t forget that the program is a true tax credit — not a deduction.  This means that a tax filer who’s eligible for the full $8,000 credit and whose “normal” tax liability totals $5,000 would receive a $3,000 refund from the U.S. Treasury at tax time.

The complete list of qualifying criteria is posted on the IRS websiteReview it with a tax professional to determine your eligibility.  Then mark your calendar for April 30, 2010.

There’s just 63 days to go!

First Time Homebuyer Tax Credit ** UPDATED Filing Requirements

by Mark Rieger, Duke Warner Realty
Below you will find a recent article from The Washington Post which goes over the updated filing requirements for the first-time homebuyer tax credit. I hope you find this information helpful. Remember the deadline for being able to receive the tax credit has a requirement that you be under a binding contract to purchase a home no later than April 30, 2010 and the deal must be closed no later than June 30, 2010. If not, you will not receive the tax credit.
 
As always, if you have any questions, or if you or someone you knonw is looking to either Buy or Sell real estate in Central Oregon, please don't hesitate to call.
 

IRS clarifies the tax-credit paper chase

Despite back-to-back snowstorms that shut federal offices for days, the Internal Revenue Service issued new guidance last week on the two tax-credit programs that are powering the country's real estate markets -- the $6,500 credit for repeat buyers and the $8,000 first-time-buyer credit.
   


Filing Requirements - http://www.irs.gov/newsroom/article/0,,id=204671,00.html

2009 Tax Return

Because of the documentation requirements for claiming the credit, taxpayers who claim the credit on their 2009 tax return must file a paper — not electronic — return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit (see the instructions for help with the form), and a properly executed copy of a settlement statement used to complete the purchase.

  • Purchasers of conventional homes should include a copy of Form HUD-1, Settlement Statement, or other settlement statement, showing all parties' names, property address, sales price and date of purchase.
  • Purchasers of mobile homes who are unable to get a settlement statement should include a copy of the executed retail sales contract showing all parties' names, property address, purchase price and date of purchase.
  • Purchasers of newly constructed homes where a settlement statement is not available should include a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

Note Regarding Signatures: While the Form 5405 instructions indicate that a properly executed settlement statement should show the signatures of all parties, the IRS recognizes that the elements of the settlement document, often a Form HUD-1, may vary from jurisdiction to jurisdiction and may not reflect the signatures of the buyer and seller. The settlement statement that must be attached to the return is considered to be properly executed if it is complete and valid according to local law. In locations where signatures are not required the IRS encourages the buyer to sign the settlement statement prior to attaching it to the tax return even in cases where the settlement form does not include a signature line.

Long-Time Residents: The November 2009 legislation extends the credit to long-time residents of the same main home if they purchase a new main home. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. For long-time residents claiming the credit, the IRS recommends attaching, in addition to the documents described above, any of the following documentation of the five-consecutive-year period:

  • Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
  • Property tax records or 
  • Homeowner’s insurance records.

Fannie Mae Announces 3.5% Buyer Incentive

by Mark Rieger, Duke Warner Realty

Fannie Mae announced that it will pay up to 3.5% closing costs/seller assistance until May 1st on HomePath Properties!

 

check it out: http://www.fanniemae.com/newsreleases/2010/4923.jhtml?p=Media&s=News%20Releases

 

Let me know if you have any questions. More to follow...

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