2009/2010 First-Time Home Buyer Tax Credit

There is a lot of confusion in the market about who qualifies for the 2009/2010 tax credit. To clear up some of the confusion we have provided some answers and links to other web pages that we hope will help. The $8,000 credit can also be combined with a Mortgage Credit Certificate to enable new homebuyer to get up to $10,000 back YEAR One and then $2,000 back every year afterwards. Click here to view more.

IRS Form 5405 First-Time Homebuyer Credit - PDF

IRS Form Form 1040X - To Amend Tax Return - Allow 8-12 weeks for processing

Additional Resources - http://www.federalhousingtaxcredit.com/2009/glance.php

Answer the following questions to see if you qualify.

1. Have you owned a home in the last 3 years?
2. Is your annual adjusted gross income (AGI) household no more than $125,000 (single) or $225,000 (joint) on your tax return?
3. To qualify for the tax credit you must have a binding sales contract on a home effective on or before April 30, 21001 and close on the home before July 1st, 2010.
4. Are you a US citizen or resident legal alien?

If you answered NO to question 1 and YES to questions 2, 3, and 4, congratulations you qualify for the 2009 home-buyer credit. Call us today for more details.

• Amount of Credit - Lesser of 10 percent of cost of home or $8,000.
• Eligible Property - Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.
• Refundable - Purchasers will receive a tax refund for any unused amount when their tax return for 2009 is filed.
• Income Limit - Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).
• First-time Homebuyer Only  - Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.
• Repayment - no repayment required.

• Program Ends - June 30, 2010

More details ........

• A refundable credit means that if you pay less than $8,000 in federal income taxes, then the government will write you a check for the difference.
• For example, To qualify for the credit, you must have a binding sales contract on a home effective on or before April 30, 21001 and close on the home before July 1st, 2010. Buyers may not have owned a home for the past 3 years to qualify as "first time" buyer. They must also live in the house for at least 3 years, or they will be obligated to pay back the credit.

• Applying for the credit is easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2009 to claim the credit.

Types of Homes that Qualify for the Tax Credit

• All homes, whether single-family, townhomes or condo apartments will qualify, provided that the home will be used as a principal residence.This also includes newly-constructed homes.