1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010. 2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010. 3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return. 4. A buyer may qualify for a reduced credit, If the taxpayer lived in the same principal home for any 5 consecutive years during the 8-year period ending on the purchase date of the new home, and the settlement date is after 11/6/09. 5. The maximum credit for this type of buyer is $6,500. Married individuals filing separately are limited to $3,250. 6. People with higher incomes may now qualify. The new law raises income limits for homes purchased after 11/6/09. Full credit is available to singles with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers. 7. The IRS will issue a revised Form 5405 in December, 2009. The new form must be used for homes purchased after 11/6/09 – whether the credit is claimed for 2008 or 2009 – and for all home purchases claimed on 2009 returns. 8. No credit is available if the purchase price of the home exceeds $800,000. 9. The purchaser must be 18 or older on the date of purchase. If married, only one spouse must meet this age requirement. 10. A dependent can't claim the credit.
Wednesday, November 25, 2009
Extended Home Buyer Credit for Repeat Buyers
The IRS wants you to know that, if you are thinking about replacing your current home, you may be eligible for a new credit of up to $6,500!
1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010. 2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010. 3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return. 4. A buyer may qualify for a reduced credit, If the taxpayer lived in the same principal home for any 5 consecutive years during the 8-year period ending on the purchase date of the new home, and the settlement date is after 11/6/09. 5. The maximum credit for this type of buyer is $6,500. Married individuals filing separately are limited to $3,250. 6. People with higher incomes may now qualify. The new law raises income limits for homes purchased after 11/6/09. Full credit is available to singles with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers. 7. The IRS will issue a revised Form 5405 in December, 2009. The new form must be used for homes purchased after 11/6/09 – whether the credit is claimed for 2008 or 2009 – and for all home purchases claimed on 2009 returns. 8. No credit is available if the purchase price of the home exceeds $800,000. 9. The purchaser must be 18 or older on the date of purchase. If married, only one spouse must meet this age requirement. 10. A dependent can't claim the credit.
1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010. 2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010. 3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return. 4. A buyer may qualify for a reduced credit, If the taxpayer lived in the same principal home for any 5 consecutive years during the 8-year period ending on the purchase date of the new home, and the settlement date is after 11/6/09. 5. The maximum credit for this type of buyer is $6,500. Married individuals filing separately are limited to $3,250. 6. People with higher incomes may now qualify. The new law raises income limits for homes purchased after 11/6/09. Full credit is available to singles with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers. 7. The IRS will issue a revised Form 5405 in December, 2009. The new form must be used for homes purchased after 11/6/09 – whether the credit is claimed for 2008 or 2009 – and for all home purchases claimed on 2009 returns. 8. No credit is available if the purchase price of the home exceeds $800,000. 9. The purchaser must be 18 or older on the date of purchase. If married, only one spouse must meet this age requirement. 10. A dependent can't claim the credit.
Friday, November 13, 2009
Taxable State Tax Refunds
Don't assume your entire state tax refund is taxable just because state/local income taxes were part of your itemized deductions in the previous year. Look up the potential sales tax deduction available to you for the previous year, then complete the worksheet to determine what portion of your state tax refund is taxable.
Prompted by an NATP question.
Thursday, November 5, 2009
New Home Buyer Credit for Military Serving oustide the USA
The new home buyer credit is extended for 1 additional year to June 30th, 2011, if you are in the military and serving outside the USA for at least 90 days.
Tuesday, November 3, 2009
Energy Credit for 2009 and 2010
The IRS wants you to know you can get a larger energy credit than in 2007!
Seven things you need to know!
- The credit is 30% of cost of qualifying improvements up to $1500 limit for 2009/2010 combined.
- Improvement include insulation, energy-efficient exterior windows, heating and a/c systems.
- "Energy efficient" products must meet higher standards than for the 2007 credit.
- Manufacturers must certify products meet new standards, providing a written statement..
- Qualifying improvements must be put in service between 1/1/2009 and 12/31/2009 inclusive.
- Improvements must be made to the taxpayer's principal residence in the United States.
- Taxpayers must claim the credit on the tax return for the year when the improvements are made.
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