The first time homebuyer tax credit and the move up buyer tax credit will be expiring in a couple of months. Buyers must have a property under contract by April 30 and they must close on it by June 30, 2010.
Some are missing some of the important details of the tax credit.
Buyers should know they can claim the credit on their 2009 or their 2010 tax return. Some are even going back and amending their 2008 returns.
According to a recent report in CNN Money, buyers claiming the tax credit after they have purchased their homes cannot file electronically. Due to increasing cases of fraud they must fill out Form 5405 and mail it to the IRS with proof of residency.
Buyers can purchase a mobile home or a travel trailer that is fixed to owned land or leased by the land owner. A mobile home not attached to land doesn't qualify.
The transaction must be an arm's length transaction. It cannot be purchased from a relative: including a parent, a spouse, a child, a grandparent or a grandchild.
For the move up tax credit, an owner must have occupied the same home for a consecutive five of the last eight years.
A buyer can file a tax return to claim the tax credit, even if he earns no taxable income or doesn't owe any federal income tax.
But, time is running out for you to take of advantage of the available credits.
Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate
Brevard County, Florida's Space Coast Real Estate & Investing
I buy, sell, rent, own and manage Investment Property.
that for you
Good things to know! Thanks for posting!
I am hearing of several cases of fraud for our tax credits!
Thank God it is Friday!
Paul
Sandy
Thanks for sharing the information.
Good luck and success.
Lou Ludwig
Sandy, That's good information to share and very helpful for consumers.
Sandy -
Thanks for the in depth information. Those are important points buyers and agents need to know.
Hey SS,
thanks for posting this important info!! How have you been?
Sandy, this is some little known info that should encourage buyers to get out there and start looking!
This sure is a great incentive for people to get out there and buy something now. On top of that prices are so low and interest rates are unbelieveably low.
The rules are important you don't want any trouble from the IRS. I have seen one of these packets of a recent buyer of mine and it was quite involved..
Don, You're welcome. There are so many items that we make sure we know about.
Paul, We have heard the same thing - fraud is prevelant with the tax credits.
Lou, You are also welcome.
Carole & Joel, It important that we get the details out to the consumer.
Hi TO, I have been doing quite well. Staying busy things have been good.
Caren, Buyers will need to hurry to head out and take advantage of the tax credits.
Rob, Prices and interest rates are low. That's great incentive to buy.
John, I haven't seen the IRS packets yet.