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2009 First-time Home Buyers Stand To Gain $8,000
1. Are you a first time home buyer? You can qualify for the credit if you (and your spouse, if married) have not owned a home in the three years prior to a purchase. 2. Did you buy your home between Jan. 1 and Dec. 1, 2009? 3. If you are single, is your Modified Adjusted Gross Income below $95,000, or $170,000 if filing a joint return? 4. Did you, the taxpayer, buy the home as a primary residence? (Defined by the plan as "any home that will be used as principle residence," and includes "single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.") 5. Will you as the taxpayer live in the home for at least three years after the purchase date? (If the taxpayer changes main residences before the three year period, the tax credit must be repaid.) 6. Did you pay more than $80,000 for the home? According to the IRS Web site, the credit is 10 percent of the purchase price of the home, with a maximum available credit of $8,000 if you purchased your home in 2009 (see #2) for either a single taxpayer or a married couple filing a joint return, but only half of that amount for married persons filing separate returns. According to the IRS, first-time home buyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date, but, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. CNN reported that on Friday, May 29, the U.S. Department of Housing and Urban Development (HUD) announced that first-time home buyers using FHA-approved lenders can now get an advance on the $8,000 tax credit created by the stimulus package and apply it toward their down payments or closing costs. Lenders can purchase tax credits from the buyers and then collect the rebate from the IRS. Home buyers must still come up with FHA's mandatory down payment of 3.5% on their own, but they can use the tax credit to lower their principal balance and save on monthly payments. The IRS adds that if any of the following describe you, you cannot take the credit, even if you buy a new home: 1. Your income exceeds the phase-out range. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above. 2. You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild. 3. You do not use the home as your principal residence. 4. You sell your home before the end of the year. 5. You are a nonresident alien. 6. You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.) 7. Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.) 8. You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008. The National Association of Home Builders compiled more details about this tax credit on their Web site. You can also visit the IRS Web site to see whether you can use this tax credit and also download the appropriate forms for filing. Article Directory: http://www.articledashboard.com Brad Chandler is with Express Realty Services of Reston, Virginia. Visit www.expressrs.com for more information. If you want to buy a house fast, call 1-888-306-9450 or visit www.expressrs.com/contact.asp and get started today! (c) 2009 - Brad Chandler. |
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