Living in The East Valley » Home Buyer Tax Credit

Home Buyer Tax Credit for Military Members

admin — Tue, 17 Aug 2010 23:46:36 +0000

For most people, the chance to get the home buyer tax credit has expired. However, for members of the military who meet the requirements below, an “extra” year is available.

From the IRS website:

Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.

Full IRS Link -

First-Time Homebuyer Credit: Members of the Military and Certain Other Federal Employees

More Information: First Time Home Buyer Tax Credit and New Tax Credit for Current Home Owners Buying a New Home

If you qualify for this, you might also be interested in – VA Home Loans – A Quick Guide For Homebuyers and Real Estate Professionals

First Time Tax Credit

patmonahan — Sat, 12 Dec 2009 22:29:14 +0000

You’ve bought your new home and amended your tax return and now you wait. And wait. 1.4 million tax payers are waiting with you.

According to the Daily Real Estate News, the IRS is experencing higher than normal the number of amended returns and that the IRS does these returns by hand, hence long delays.

We can expect delays to continue and maybe get worse, since the tax credit has been extended and includes home owners now.

New Tax Credit for Current Home Owners Buying a New Home

admin — Mon, 09 Nov 2009 18:50:56 +0000

The President signed the legislation to expand the first time home buyer tax credit to include current home owners on Friday 11/6. Here is some basic information about the credit.

What is a tax credit?
A tax credit differs from a tax deduction in that the amount of the credit is deducted from the amount of tax you owe. A deduction reduces that amount of income which is subject to tax. In the case of this first time home buyer tax credit, if the amount of the credit is greater than the amount you owe, then you will be sent a refund check for the remaining amount of the credit.

Who is eligible?
Someone who has used the home being sold or being sold as a principal residence consecutively for 5 of the previous 8 years. The home being purchased must cost $800,000 or less. You must close on your home purchase between November 7, 2009 and April 30, 2010, or have a binding written contract by April 30, 2010 and close by July 1, 2010.

What type of home can I buy?
Single family homes, town homes, and condominiums all qualify.

What is the amount of the credit?
The credit amount is 10% of the cost of the home up to a maximum of $6,500. Income limits do apply. The credit phases out for individuals with an adjusted gross income over $125,000 or a couple with an adjusted gross income over $225,000.

When do I get the money?
This is a tax credit. You will not get the money when you buy the house. Instead the credit will be applied to the taxes you owe for 2009 or 2010 depending upon when you purchase and how you file.

More Information

There some additional rules that apply. If you would like more information, please send an email requesting the information to Pat@RealtySecrets.net.

Consult an Accountant
Tax laws are complicated and each year there are new changes; therefore, we always recommend that you consult your accountant or the IRS regarding any tax questions that you might have including whether or not you qualify for this tax credit.

Source: National Association of REALTORS®.

First Time Home Buyer Tax Credit Extended

admin — Mon, 09 Nov 2009 18:45:08 +0000

The President signed the legislation to extend the first time home buyer tax credit on Friday 11/6. There are a few changes and this is different from the 2008 first time home buyer tax credit. Here is some basic information about the credit which includes the changes and the extension.

Who is a first time home buyer?
Someone who has not owned a principle residence, a home they have lived in, for at least three years previous to the purchase of a home this year.

What type of home can I buy?
Single family homes, town homes, and condominiums all qualify.

What is the amount of the credit?
The credit amount is 10% of the cost of the home up to a maximum of $8000. Income limits do apply. The credit phases out for individuals with an adjusted gross income over $125,000 or a couple with an adjusted gross income over $225,000.

When do I have to purchase to get the credit?
You must purchase a home between January 1, 2009 and have a written binding contract to purchase a home by April 30, 2010. The purchase must close by July 1, 2010. If you purchase a home after November 6, 2009 the maximum price of the home can be $800,000 in order to qualify for the credit.

Does the credit have to be paid back?
This credit does not have to be paid back for people who purchase between January 1, 2009 and the July 1, 2010 closing deadline unless the home is sold within three years and then the entire credit us due upon the sale of the property.

More Information

There some additional rules that apply. If you would like more information, please send an email requesting the information to Pat@RealtySecrets.net.

Source: National Association of REALTORS®.

First Time Buyer Tax Credit for 2009

admin — Mon, 23 Feb 2009 21:27:00 +0000

The American Recovery and Reinvestment Act of 2009 was signed by the President on February 17, 2009. It contains a first time home buyer tax credit that is somewhat different from last year. Here is some basic information about the credit.

Who is a first time home buyer?
Someone who has not owned a principle residence, a home they have lived in, for at least three years previous to the purchase of a home this year.

What type of home can I buy?
Single family homes, town homes, and condominiums all qualify.

What is the amount of the credit?
The credit amount is 10% of the cost of the home up to a maximum of $8000. Income limits do apply. The credit phases out for individuals with an adjusted gross income over $75,000 or a couple with an adjusted gross income over $150,000.

When do I have to purchase to get the credit?
You must purchase a home between January 1, 2009 and December 1, 2009.

Does the credit have to be paid back?
This credit does not have to be paid back for people who purchase between January 1, 2009 and December 1, 2009 unless the home is sold within three years and then the entire credit us due upon the sale of the property.

People who purchased a home between April 9, 2008 and December 31, 2008 will have to pay back their credit over a 15 year period. If they sell the home within 15 years, then the remaining balance of the credit will be due upon the sale of the property. (Rules for last year’s credit were different and the maximum amount was $7500.)

When do I get the money?
This is a tax credit. You will not get the money when you buy the house. Instead the credit will be applied to the taxes you owe for 2009. This will occur when you file your 2009 taxes in 2010.

Source: National Association of REALTORS®.

First Time Buyer Tax Credit

admin — Thu, 30 Oct 2008 17:47:00 +0000

There has been a lot of talk in the press about the first time home buyer tax credit but not a lot of detailed information. I was unable to find detailed information at the IRS site at this time but the National Association of Home Builders has put a lot of information together at their site FederalHousingCreditTaxCredit.com. The credit is available for people who buy a home between 4/9/08 and 7/1/09. The home can be a resale or a new build. The tax credit acts as an interest free loan and must be repaid over 15 years. As always, we recommend that you talk with your accountant to get specific information about how the credit will benefit you.