Delaware Valley Real Estate - OnPoint with Letitia Stevenson

Home Buyer Tax Credit CLOSING DEADLINE Extended to September 30, 2010!

The Congress has passed new legislation (H.R. 5623 - the Homebuyer Assistance and Improvement Act) which extends the tax credit CLOSING DEADLINE by three (3) months, from June 30^th to September 30^th.  This extension will allow the many "first-time" and "step-up" home buyers who had a RATIFIED CONTRACT in place NO LATER THAN April 30, 2010 - but were unable to close on or before the original June 30 deadline - to take advantage of the $8,000 and $6,500 tax credits.

Homebuyers who entered into contracts after April 30th remain ineligible for the tax credit. Also, the income restrictions and all other rules still apply. For more information on the 2010 Home Buyer Tax Credit, please read my related posts:

• Home Buyer Tax Credit 2010 - Revised November 2009 (Extended and Expanded)
• Home Buyer Tax Credit 8000 - First Time Home Buyer (Extended), Expires April 30, 2010 
• Home Buyer Tax Credit 6500 - Current Homeowners (Repeat Buyers), Expires April 30, 2010

If you have any real estate questions, please contact me. Whether buying, selling, or just curious to learn more, I'm here to assist you.  Please contact me with your questions. I look forward to hearing from you.

This post is provided for informational purposes only. If you have specific questions or individual concerns regarding the tax credit, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

Home Buyers:  Seize This Opportunity Now! The Window Closes April 30, 2010.

Opportunity, I like to call window of opportunity, exists or is created in real time; and once it closes, it is too late to take advantage of it.  This can happen very quickly, so you must act fast.

The home buyer tax credit has opened up a wonderful opportunity for qualified first time home buyers to pocket up to $8,000 - and repeat home buyers up to $6,500. But, home buyers must seize this opportunity while the window remains open long enough to take advantage of it.

At this time, it appears that the government will not offer another extension. Any first-time or repeat buyer who is interested in taking advantage of this opportunity must have a binding sales contract by April 30, 2010 midnight*.

*NOTE: The home purchase must be completed (i.e., settled, closed) by June 30, 2010. For more information on home buyer tax credit, please read my post on Home Buyer Tax Credit 2010.

If you have any real estate questions, please contact me. Whether buying, selling, or just curious to learn more, I'm here to assist you.  I look forward to hearing from you.

Home Buyer Tax Credit for Military

In an effort to stimulate economic growth and home ownership, President Obama signed the Worker, Home Ownership, and Business Assistance Act of 2009 into law (on Nov.6 2009) which extended the first-time homebuyer tax credit deadline to April 30, 2010 (to April 30, 2011 for military personnel), and expanded the credit to include qualified current homeowners.

As a qualified service member (i.e., members of the military and foreign service and intelligence communities eligible under tax credit provisions), the Home Buyer Tax Credit offers two (2) special benefits:

(1) YOU HAVE AN EXTRA YEAR TO PURCHASE A HOME

Home buyers must meet the April 30, 2010 deadline to be eligible for the tax credit. However,  service members who are serving (or have served) overseas on "official extended duty" for at least 90 days during a specified period (Jan 1, 2009 - Apr 30, 2010) have until April 30, 2011 to purchase their homes. Also, a 60-day extension to close is allowed (i.e., may close on or before June 30, 2011) if a binding contract is in place prior to the April 30^th deadline.

(2) YOU DON'T HAVE TO PAY BACK CREDIT (under the 3-year Occupancy Requirement)

Home buyers have to repay the credit if they live in their primary residence less than 3 years; however, qualified service members are exempt from this occupancy requirement. They do not have to repay the credit even if they have to sell their home in less than three years occupancy, as long as it due to official business.

HOME BUYER TAX CREDIT FOR MILITARY CHART

The following chart provides an "At-A-Glance" look at the Home Buyer Tax Credit for Military (QSM) compared to Home Buyer Tax Credits (FTHB & CHO) for civilians:

MORE INFORMATION

For more information on the Home Buyer Tax Credit for Military and Other Service Members, please check out these links.

 Home Buyer Credit for Military and Other Service Members (NAHB)

 Home Buyer Credit for Military and Other Service Members (NAR)

 Home Buyer Credit for Military and Other Service Members (IRS) 

RELATED POSTS

• Home Buyer Tax Credit 2010 - Revised November 2009 (Extended and Expanded)
• Home Buyer Tax Credit 8000 - First Time Home Buyer (Extended), Expires April 30, 2010
• Home Buyer Tax Credit 6500 - Current Homeowners (Repeat Buyers), Expires April 30, 2010
• Home Buyer Tax Credit 8000 - First Time Home Buyer, Expires November 30, 2009

If you have any real estate questions, please contact me. Whether buying, selling, or just curious to learn more, I'm here to assist you.  Please contact me with your questions. I look forward to hearing from you.

This post is provided for informational purposes only. If you have specific questions or individual concerns regarding the tax credit, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

First Time Home Buyer Tax Credit Comparison Chart (2008 - 2010)

 This FTHB Tax Credit Comparision Chart provides an "At-A-Glance" look at of the following: 

1. Original Tax Credit as enacted in the Housing and Economic Recovery Act of 2008 (July 2008)
2. Revised Tax Credit as enacted in the American Recovery and Reinvestment Act of 2009 (Feb 2009)
3. Revised Tax Credit as enacted in the Worker, Homeownership and Business Assistance Act of 2009 (Nov 2009) 

MORE INFORMATION

For more information on the First Time Home Buyer Tax Credit, please check out these links.

 Federal Housing Tax Credit (NAHB)

 Home Buyer Tax Credit (NAR)

 Homebuyer Tax Credit Changes (Comparison Chart)

 FAQs Home Buyer Tax Credit Changes

 First-Time Homebuyer Credit (IRS)  

 Home Buyer Tax Credit: Latest News (NAR)

RELATED POSTS 

• Home Buyer Tax Credit 2010 - Revised November 2009 (Extended and Expanded)
• Home Buyer Tax Credit 6500 - Current Homeowners (Repeat Buyers)
• Home Buyer Tax Credit 8000 - First Time Home Buyer (Extended), Expires April 30, 2010
• Home Buyer Tax Credit for Military - First Time Home Buyers and Current Homeowners 
• Home Buyer Tax Credit 8000 - First Time Home Buyer, Expires November 30, 2009

If you have any real estate questions, please contact me. Whether buying, selling, or just curious to learn more, I'm here to assist you.  Please contact me with your questions. I look forward to hearing from you.

This post is provided for informational purposes only. If you have specific questions or individual concerns regarding the tax credit, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

Home Buyer Tax Credit 8000 - Expires April 30, 2010

Now is a great time to take advantage of tax credit: Up to $8,000 for qualified First Time Buyers! Congress has passed legislation (enacted November 2009) that extends the Tax Credit of 10% of home's purchase price (up to $8,000) for first-time home buyers signing sales agreements from November 7, 2009 through April 30, 2010, and closing no later than June 30, 2010. 

CREDIT AMOUNT
$8,000 ($4,000 married filing separate)

ELIGIBILITY
May not have had an interest in a principal residence for 3 years prior to purchase

DEADLINES
Period: Nov 7, 2009 - Apr 30, 2010. All contracts must be in effect no later than April 30, 2010 and close no later than June 30, 2010 Septemper 30, 2010 (Closing Deadline Updated 7/2/2010).

INCOME CAPS
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more may be eligible for receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Married joint tax filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more may be eligible for a partial credit. However, joint filers who earn $245,000 and above are ineligible.

MAXIMUM PURCHASE PRICE
$800,000

DEPENDENTS 
Ineligible

ADDITIONAL REQUIREMENTS (ANTI-FRAUD RULE)
Purchaser must attach documentation of purchase to tax return

For more information, please check out these links.

 FAQs First-Time Home Buyer Tax Credit 8000 (NAHB)

 Extended Home Buyer Tax Credit (NAR)

 How to Get Extended Home Buyer Tax Credit (NAR)

 First-Time Homebuyer Credit (IRS)

 Home Buyer Tax Credit IRS Form 5405  

Please Note: Income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you purchased a home between January 1, 2009 and November 6, 2009, please read Home Buyer Tax Credit 8000 - Expires November 30, 2009.

RELATED POSTS

• Home Buyer Tax Credit 2010 - Revised November 2009 (Extended and Expanded)
• Home Buyer Tax Credit 6500 - Current Homeowners (Repeat Buyers), Expires April 30, 2010
• Home Buyer Tax Credit for Military - First Time Home Buyers and Current Homeowners
• Home Buyer Tax Credit 8000 - First Time Home Buyer, Expires November 30, 2009
• First Time Home Buyer Tax Credit Comparison Chart (2008 - 2010)

If you have any real estate questions, please contact me. Whether buying, selling, or just curious to learn more, I'm here to assist you.  Please contact me with your questions. I look forward to hearing from you.

This post is provided for informational purposes only. If you have specific questions or individual concerns regarding the tax credit, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

Home Buyer Tax Credit 6500 - Current Homeowners (Repeat Buyers)

Now is a great time to take advantage of tax credit: Up to $6,500 for qualified current homeowners (repeat buyers)! Congress has passed legislation (enacted November 2009) that expands tax credit to allow qualified current home owners a credit of 10% of home's purchase price (up to $6,500) for buying a new or existing home. All sales must be under contract on or after November 7, 2009 and no later than April 30, 2010, and must close no later than June 30, 2010.

CREDIT AMOUNT
$6,500 ($3,250 married filing separate)

ELIGIBILITY
Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years

DEADLINES
Period: Nov 7, 2009 - Apr 30, 2010. All contracts must be in effect no later than April 30, 2010 and close no later than June 30, 2010 Septemper 30, 2010 (Closing Deadline Updated 7/2/2010).

INCOME CAPS
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more may be eligible for receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Married joint tax filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more may be eligible for a partial credit. However, joint filers who earn $245,000 and above are ineligible.

MAXIMUM PURCHASE PRICE
$800,000

DEPENDENTS 
Ineligible

ADDITIONAL REQUIREMENTS (ANTI-FRAUD RULE)
Purchaser must attach documentation of purchase to tax return

For more information, please check out these links.

 FAQs First-Time Home Buyer Tax Credit 6500 (NAHB)

 Extended Home Buyer Tax Credit (NAR)

 How to Get Extended Home Buyer Tax Credit (NAR)

 First-Time Homebuyer Credit (IRS)

 Home Buyer Tax Credit IRS Form 5405  

 RELATED POSTS

• Home Buyer Tax Credit 2010 - Revised November 2009 (Extended and Expanded)
• Home Buyer Tax Credit 8000 - First Time Home Buyer (Extended), Expires April 30, 2010
• Home Buyer Tax Credit for Military - First Time Home Buyers and Current Homeowners
• Home Buyer Tax Credit 8000 - First Time Home Buyer, Expires November 30, 2009

If you have any real estate questions, please contact me. Whether buying, selling, or just curious to learn more, I'm here to assist you.  Please contact me with your questions. I look forward to hearing from you.

This post is provided for informational purposes only. If you have specific questions or individual concerns regarding the tax credit, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

New Homebuyer Credit Form Now Available!

The new homebuyer credit form - First-Time Homebuyer Credit and Repayment of Credit (Form 5405) - is now available on the IRS website. The new form comes with new document (settlement statement & other documents) requirements to prove eligibility in the efforts to prevent fraud related to the first-time homebuyer credit.

2008 Form 5404:

Taxpayers who purchased a home in 2009 on or before November 06, 2009 must use the 2008 version of First-Time Homebuyer Credit form (2008 Form 5404).

New Version of Form 5404:

Taxpayers who purchase a home on or after November 07, 2009 must use the new version of the form to claim the credit (whether the credit is claimed for 2008 or for 2009). Taxpayers claiming the credit on their 2009 returns, no matter when the house was purchased, i.e., in 2009 or in 2010, must also use the new version of Form 5405.

Taxpayers who claim the credit on their 2009 tax return will not be able to file electronically but instead will need to file a paper return.

For more information, please visit:

• IRS News Release on New Homebuyer Credit Form
• IRS First-Time Homebuyer Credit page
• IRS New Form 5405 (Rev. December 2009)

This post is for informational purposes only and should be verified by a qualified tax professional. Please consult your tax advisor/accountant/cpa for tax advice and to determine whether you are eligible for this tax credit.

Home Buyer Tax Credit 2010 - Revised November 2009

It's official. On November 5, 2009, Congress passed Home Buyer Tax Credit Extension & Expansion.  Then on Friday, November 6, 2009, President Obama signed it into Law effective November 7, 2009. This bill extends the tax credit of 10% of home's purchase price (up to $8,000) for first-time homebuyers through April 30, 2010. In addition, a new tax credit of 10% of home's purchase price (up to $6,500) has been added for qualified existing home owners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. 

CREDIT AMOUNT 

First Time Home Buyer: $8,000 ($4,000 married filing separate)

Current Homeowner: $6,500 ($3,250 married filing separate)

ELIGIBILITY 

First Time Home Buyer: May not have had an interest in a principal residence for 3 years prior to purchase

Current Homeowner: Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years

DEADLINES
Period: Nov 7, 2009 through Apr 30, 2010. All contracts must be in effect no later than April 30, 2010 and close no later than June 30, 2010 Septemper 30, 2010 (Closing Deadline Updated 7/2/2010).

INCOME CAPS
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more may be eligible for receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Married joint tax filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more may be eligible for a partial credit. However, joint filers who earn $245,000 and above are ineligible.

MAXIMUM PURCHASE PRICE
$800,000

DEPENDENTS 
Ineligible

ADDITIONAL REQUIREMENTS (ANTI-FRAUD RULE)
Purchaser must attach documentation of purchase to tax return

MORE INFORMATION

For more information, please check out these links.

 Federal Housing Tax Credit (NAHB)

 Home Buyer Tax Credit (NAR)

 Homebuyer Tax Credit Changes (Comparison Chart)

 FAQs Home Buyer Tax Credit Changes

 First-Time Homebuyer Credit (IRS)  

 Home Buyer Tax Credit: Latest News (NAR)

Please Note: Income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you purchased a home between January 1, 2009 and November 6, 2009, please read Home Buyer Tax Credit 8000 - Expires November 30, 2009.

RELATED POSTS

• Home Buyer Tax Credit 8000 - First Time Home Buyer (Extended), Expires April 30, 2010 
• Home Buyer Tax Credit 6500 - Current Homeowners (Repeat Buyers), Expires April 30, 2010
• Home Buyer Tax Credit for Military - First Time Home Buyers and Current Homeowners
• Home Buyer Tax Credit 8000 - First Time Home Buyer, Expires November 30, 2009
• First Time Home Buyer Tax Credit Comparison Chart (2008 - 2010)

If you have any real estate questions, please contact me. Whether buying, selling, or just curious to learn more, I'm here to assist you.  Please contact me with your questions. I look forward to hearing from you.

This post is provided for informational purposes only. If you have specific questions or individual concerns regarding the tax credit, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

If you've been sitting on the sidelines - waiting to buy your first home - or, you haven't owned a primary residence during the prior three years, the time to act is now! Home prices are down, interest rates are historically low, and a tax credit (up to $8,000) is available to qualified first time home buyers. Now just might be the right time to buy! But time is running out on the $8,000 tax credit and you'll have to act soon if you want to take advantage of this opportunity.

You've heard the saying, "Time Flies." Well, December is just around the corner. If you're a First Time Home Buyer, you may be eligible for a tax credit of 10% (up to $8,000) of your home's purchase price. But, you must buy before December 01, 2009. 

$8,000 HOME BUYERS TAX CREDIT HIGHLIGHTS:

• For first-time home buyers only - buyers who have not owned a principal residence during the three-year period prior to the purchase.

• No Repayment - tax credit does not have to be repaid unless the property is no longer being used as a principal residence within the 36-month period beginning on the purchase date.

• Refundable Tax Credit - 10% of the home's purchase price up to a maximum of $8,000.

• Purchased Period - close on or after January 1, 2009 and before December 1, 2009 (Expires November 30, 2009).

• Income Limitations- Single taxpayers with incomes up to $75K and married couples with incomes up to $150K qualify for the full tax credit. Tax credit is phased out for individuals with MAGI of $75k or higher (up to $ 95K) or couples with MAGI of $150k or higher (up to $170K).

• Claim Credit - The credit is claimed on new IRS Form 5405 (First-Time Homebuyer Credit), and filed with your 2008 or 2009 federal income tax return.

ADDITIONAL RESOURCES:

For more information, please check out these links.

 2009 Home Buyer Tax Credit (NAR)

 First-Time Homebuyer Credit (IRS)

 FAQs Home Buyer Tax Credit 2009 or 2010 (IRS)

 First-Time Home Buyer Tax Credit IRS Form 5405

RELATED POSTS

Update - New legislation in November 2009 has extended and expanded upon the $8,000 tax credit. If you have purchased or plan to purchase a home after November 6, 2009, you may also want to check out the following links:

• Home Buyer Tax Credit 2010 - Revised November 2009 (Extended and Expanded) 
• Home Buyer Tax Credit 8000 - First Time Home Buyer (Extended), Expires April 30, 2010
• Home Buyer Tax Credit 6500 - Current Homeowners (Repeat Buyers), Expires April 30, 2010
• First Time Home Buyer Tax Credit Comparison Chart (2008 - 2010)

If you have any real estate questions, please contact me. Whether buying, selling, or just curious to learn more, I'm here to assist you.  Please contact me with your questions. I look forward to hearing from you.

This post is provided for informational purposes only. If you have specific questions or individual concerns regarding the tax credit, please contact a tax professional or the Internal Revenue Service at 800-829-1040.