Economic Stimulus Tax Credits

The homebuyers tax credit has been extended and is now open to more than first time homebuyers.  Here are keypoints to the updated Economic Stimulus Plan for homebuyers:

Home Buyer Tax Credit  | First Time Homebuyers | Repeat Homebuyers | Updated Economic Stimulus Plan

• A tax credit of up to $8,000 has been extended to first time homebuyers who are under contract on or before April 30, 2010.  You must complete your home purchase no later than June 30th, 2010 to qualify.

• Repeat homebuyers can now take advantage of the $6,500 tax credit available to them.  You must have sold your home  between Novemember 6th, 2009 and April 30th, 2010 and have been a homeowner for 5 consecutive years.  In order to qualify your home purchase must be made by June 30th, 2010.

• You cannot claim the tax credit if you are a dependent or are under the age of 18.
• If either spouse has owned a home prior, married couples cannot claim the first time homebuyers credit, however they may be eligible for the repeat home buyers tax credit.  

• Home purchases cannot exceed $800,000 and do not qualify for the first time home buyer credit nor the repeat home buyer credit.  

• Home purchases in 2010 may be claimed on a amended 2009 tax return.
• Additional tax credit benefits apply to members of the miliary, foreign service and the intelligence community.
• Anyone claiming the homebuyers tax credit must submit a copy of the HUD 1 or settlement statement and IRS form 5405 to benefit from the first time home buyer tax credit or the repeat home buyer credit.

If you have questions or are not sure if you qualify for economic stimulas plan, contact us and we would be happy to provide you with additional information.