If you purchased a home in 2009 OR if you are a home buyer and haven’t owned a home in the past 3 years, you may be able to claim a tax credit up to $8,000.
Homes bought in 2010 must have a binding contract by April 30th and close by June 30th. Also if you are a long time home owner and you are purchasing a replacement home for your principal residence, you may qualify for a credit of up to $6,500. If you bought the home in 2010 you have the option of claiming the credit on either your 2009 or 2010 tax returns.
You must attach a copy of your settlement statement to your tax returns to get the credit. You will not be able to file your tax returns electronically since you have to attach the settlement statement. For more information:
www.irs.gov/recovery
Recovery.gov is the U.S. government’s official website providing easy access to data related to Recovery Act spending:
www.recovery.gov
New Provisions
Effective Date - November 7, 2009
Deadline - Contract signed before May 1, 2010, must close before July 1, 2010
Members of the uniformed services, foreign services, and intelligence employees who served an extended service of 90 days will have until April 30, 2011 and June 30, 2011.
Amount – First-Timers: maximum of $8,000 or 10% of sales price. Prior Owners: $6,500 if lived in prior home for at least 5 consecutive years of past 8 years
Income Limit – Individual: $125,000 & Couples: $225,000
Other Restrictions – Buyer must be at least 18 years old and not classified as a dependent for tax purposes
Home must cost less than $800,000.
Home must be primary residence for at least 3 years. If home is sold or buyer moves, before 3 years, must re-pay full amount of credit. Exception for military, foreign services, or intelligence with extended 90 days service overseas.
How to claim If purchased in 2010, by amending 2010 tax return or claiming on 2011 tax return
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