First Time Hombuyer Credit Extended
The First-Time Home-buyer tax credit was recently extended to allow buyers to receive a tax credit when purchasing a new home in 2010. Most of the blogs I read and posts on social networking sites have details on the extension, what it allows and who it applies to. Most of the Realtors, Builders, and Mortgage professionals I speak with are up to date on the recent legislation, but its the consumers who are behind. My Aunt is a Realtor in Merritt Island and she told me that a few of her long-time buyers are wanting to push their closings so they can qualify for the tax credit. Some consumers don’t seem to understand the new guidlines and restrictions. I encourage Realtors to take a moment and send information out to your farm, share information with your community associations, and don’t forget that the average consumer doesn’t get the kind of updates you get. Here are some basics for you to share with your customers. A great resource is www.irs.gov.
- New Legislation, the Worker, Homeownership and Business Assistance Act of 2009 was signed into law on November 6, 2009 and extends and expands the first-time homebuyer credit
- A buyer must enter into a contract to buy, a principal residence on or before, April 30, 2010
- They must close on the home by June 30, 2010
- Buyers can claim the credit on either the 2009 or 2010 return
- For those buyers who have owned a home for any five-consecutive year period during the eight-year period that ended on the date their new home is purchased can claim a home-buyer credit of up to $6,500
- Higher income limits
- New benefits for members of the military and other federal employees
The IRS website specifies more general information on purchases made in 2008 and 2009. Don’t forget to encourage your buyers to seek the advice of a certified public accountant to learn more about their situation.
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