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2009-11-28T15:33:00.001-06:00

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First Time Homebuyers and Repeat Buyers Tax Credit

2009-11-22T20:24:00.000-06:00

Happy Homeowners- Laura, Charlotte, and Chris

What’s the buzz all about? Take advantage of History in the Making.

Wow, Uncle Sam is finally giving back! As the hit TV show, The Jefferson's say “We’re a Moving on up.... to the East side...." The American Recovery and Reinvestment Act of 2009 will go down in history as a time to make that move.

What's the catch? The catch is that First Time Homebuyer's can receive up to $8000 Tax Credit and Repeat Homebuyers can receive up to $6500 Tax Credit.

First Time Homebuyers

Binding Contracts must be signed by April 30, 2010 with a home purchase completed by June 30, 2010
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000
Home prices must be less than $800,000
Income limits of $125,000 for individuals and $225.000 for married couples filing jointly
Must be 18 years old or older and file an independent tax return
First Time homebuyers cannot make purchases from relatives or ancestors, including spouse’s relatives
Married couples do not qualify if either spouse has owned a home in the past 3 years
Tax credits do not have to be re-paid unless the home is sold or ceases to be used as the buyer’s principal residence within 3 years after the initial purchase
Taxpayers must submit a copy of the HUD-1 (closing statement) along with Form 5405 to claim the credit. You may state this claim on an amended 2009 income tax return
HUD allows buyers using FHA-insured mortgages to apply tax refunds for down payment and closing cost expenses.

Qualified Service Members- Extended Duty

Binding Contracts must be signed by April 30, 2011 with a home purchase completed by June 30, 2011
Qualified Service Member is defined as a member of the uniformed services of the US military, a member of the Foreign Service of the US, or an employee of the intelligence community.
Extended duty is defined by Qualified Service Members serving at least 50 miles away from home for a period in excess of 90 days

Repeat Home Buyers

Binding Contracts must be signed by April 30, 2010 with a home purchase completed by June 30, 2010
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500
Home prices must be less than $800,000
Homebuyers must have owned a home for five consecutive years out of the prior eight years.
Home purchases do not have to be more expensive than previous home purchases
Income limits of $125,000 for individuals and $225,000 for married couples filing jointly
Tax credits do not have to be re-paid unless the home is sold or ceases to be used as the buyer’s principal residence within 3 years after the initial purchase
Homebuyers cannot make purchases from relatives or ancestors, including spouse’s relatives
Taxpayers must submit a copy of the HUD-1 (closing statement) along with Form 5405 to claim the credit. You may state this claim on an amended 2009 income tax return

Information was taken from http://www.federalhousingtaxcredit.com/. We recommend you consult a Certified Public Accountant or Attorney for legal advice.

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Business Alliance What is happening in Birmingham

First Time Homebuyers and Repeat Buyers Tax Credit