ATTENTION ALL FIRST-TIME HOMEBUYERS*!!!!
IN 2008, CONGRESS ENACTED A $7500.00 TAX CREDIT DESIGNED TO BE AN INCENTIVE
FOR FIRST-TIME HOMEBUYERS TO PURCHASE A HOME.
IN 2009, CONGRESS INCREASED THE CREDIT TO $8000.00, AND MADE SEVERAL IMPROVEMENTS TO THE PROGRAM.
IN NOVEMBER 2009, THE PROGRAM WAS EXTENDED TILL APRIL 30, 2010 --
PLEASE READ BELOW FOR THE LATEST PROGRAM PROVISIONS.
SO HERE'S YOUR OPPORTUNITY TO BUY YOUR HOME, AND GET A TAX CREDIT EQUAL TO 10% OF THE PURCHASE PRICE UP TO A MAXIMUM OF $8000.00,
OR YOU MAY GET UP TO $8000.00 IN CASH FROM THE IRS!!!
HERE'S HOW IT'S DONE:
1. BE A 'FIRST-TIME' HOMEBUYER; THAT MEANS YOU HAVEN'T OWNED A HOME, OR HAD
AN OWNERSHIP INTEREST IN ANY HOME IN THE THREE YEARS PREVIOUS TO THE DAY
OF THE 2009/2010 PURCHASE.
2. THIS PROGRAM ONLY APPLIES TO THE PURCHASE OF THE BUYER'S PRINCIPAL
RESIDENCE ON OR AFTER JANUARY 1, 2009, AND BEFORE APRIL 30, 2010.
3. IF YOU MEET THE CRITERIA OF #'S 1 & 2, ALL YOU NEED TO DO THEN IS TO APPLY
FOR YOUR TAX CREDIT ON IRS FORM S405. (Form S405 can be found at www.irs.gov)
THE EXTENDED $8,000 FIRST-TIME HOME BUYER TAX CREDIT AT A GLANCE
1. THE TAX CREDIT DOES NOT HAVE TO BE REPAID.
2. THE TAX CREDIT IS EQUAL TO 10 PERCENT OF THE HOME'S PURCHASE PRICE,
UP TO A MAXIMUM OF $8000.00
3. THE TAX CREDIT APPLIES ONLY TO HOMES PRICED AT $800,000.00 OR LESS.
4. THE TAX CREDIT NOW APPLIES TO HOME SALES ON OR AFTER JANUARY 1, 2009,
AND ON OR BEFORE APRIL 30,2010. HOWEVER; IN CASES WHERE A BINDING
SALES CONTRACT IS CONTRACT IS SIGNED BY APRIL 30, 2010, A HOME PURCHASE
JUNE 30, 2010 WILL QUALIFY.
IN ADDITION: MEMBERS OF THE U.S. ARMED FORCES WHO HAVE BEEN DEPLOYED
OVERSEAS, WILL HAVE AN ADDITIONAL YEAR TO QUALIFY FOR THE CREDIT -- UP
TILL APRIL 30, 2011.
5. FOR HOMES PURCHASED AFTER NOVEMBER 6, 2009, AND ON OR BEFORE APRIL 30,
2010, SINGLE TAXPAYERS WITH INCOMES UP TO $125,000.00, AND MARRIED COUPLES
WITH INCOMES UP TO $225,000.00, QUALIFY FOR THE FULL TAX CREDIT. (INCOME IS
CALCULATED ON THE TAXPAYER'S MODIFIED ADJUSTED GROSS INCOME.)
6. IF YOU PURCHASED YOUR HOME BETWEEN JANUARY 1, 2009, AND APRIL 15, 2009,
YOU CAN CLAIM YOUR TAX CREDIT ON YOUR 2008 FEDERAL TAX RETURN. (RETURNS ALREADY FILED FOR 2008 WILL HAVE TO BE AMENDED)
7. THE $8000.00 CREDIT IS A 'REFUNDABLE CREDIT'. THAT MEANS ANY AMOUNT ABOVE
THAT WHICH IS USED TO OFFSET THE BUYER'S NET INCOME TAXES DUE FOR THE YEAR, IS REFUNDED TO THE BUYER IN CASH!
EXAMPLES:
IF THE BUYER'S NET TAXES - THE AMOUNT THEY WOULD NORMALLY SEND TO THE IRS ALONG WITH THEIR RETURN - IS:
A. $15,000.00 - IT WOULD BE OFFSET TO $7,000.00.
B. $8,000.00 - IT WOULD BE OFFSET TO $0.00.
C. $5,000.00 - IT WOULD BE OFFSET TO $0.00 AND THEY RECEIVE A $3,000.00 REFUND.
D. $0.00 - NO OFFSET NEEDED - THEY RECEIVE A CHECK FOR
THE ENTIRE $8000.00.
LASTLY:
1. TO QUALIFY FOR THE CREDIT, THE HOMEBUYER MUST BE A U.S. CITIZEN, OR HAVE
PERMANENT RESIDENT STATUS.
2. HOMEBUYERS RETAIN THE OPTION TO CLAIM THE CREDIT IN THE PREVIOUS TAX YEAR.
3. IF A HOMEBUYER CLAIMS THE CREDIT, AND SELLS THE HOME WITHIN THREE YEARS,
THE CREDIT IS SUBJECT TO RECAPTURE.
FOR MORE INFORMATION GO TO: www.federalhousingtaxcredit.com
NOTES: THIS CONTENT IS INFORMATIONAL ONLY, AND IS NOT INTENDED TO BE TAX,
FINANCIAL, OR LEGAL ADVICE. ALWAYS CONTACT YOUR CPA OR ATTORNEY IN ALL
SUCH MATTERS.
IF WE CAN BE OF ANY FUTHER ASSISTANCE, PLEASE DON'T HESITATE TO CONTACT US BY PHONE, OR USE THE CONTACT FORM PROVIDED IN THIS WEBSITE.
